Quote from: Gameover on May 26, 2011, 04:02:26 PM

Quote from: freecoin on May 26, 2011, 03:41:46 PM

The reasons to buy/use Bitcoins are many, but the opportunity to trade OUTSIDE the Federal Reserve system, and perhaps your country's central bank too (quite possibly hastening its demise), and its associated tax is probably one of the greatest reasons. What I'm saying is, once you dig into it, you will discover the US Federal Income Tax is an excise on banking within the Federal Reserve System. From a legal standpoint, bitcoins are not "income" under the Revenue Acts of the United States. Unless of course you consent to consider them income; in this day of heavy conditioning (brainwashing), that's always an option. I asked a tax attorney about bitcoin and he said they were "includible" in gross income. I then said "oh, I can include them if I choose to." And he just laughed at that. My interpretation is... gotcha.

http://savingtosuitorsclub.net/showthread.php?145-Exactly-what-does-the-IRS-agent-think
http://losthorizons.com/CtCforFree.pdf

Of course, have 100 bitcoins in your account is meaningless, but the moment you sell those 100 bitcoins for $800 you have to report that. Having bitcoins is like having 100 jpgs or 100 bookmarks, you don't report jpgs on your taxes even though they may have value, but if you sell them then you report that, same thing.

The great thing is you only need to report it once the dollars become "real". No need to report mtGox dollars or Dwolla dollars. Only once it hits your bank account. I would just seriously hope dwolla doesn't get shut down.