Re: Wall Observer - MtGoxUSD wall movement tracker

How do you deal with capital gains? Ignore it?

I would have some... but I lost most of my private keys in an unfortunate boat accident.

Wow that blows... Sorry to hear that man Undecided

I think you missed the implied "wink wink"

EDIT: Also, he was illustrating the point of how easy it is to LEGALLY avoid taxes, provided you have lots of money. The more money you have, the easier it is to take advantage of legal structures specifically put in place to help rich folks avoid taxes. So that they can then donate to the political campaigns of those who put the legal structures in place.

Hmm, I see. But in that case, it doesn't really illustrate the point, because one doesn't have to pay capital gains on unrealized gains. It's when you convert to fiat that the capital gains will have to be paid. So if you claim to have lost your coins in a boating accident, one day you may want to convert them to fiat, and then you'll have some trouble explaining how you gained those coins. Maybe you cheated on income taxes? I can't see how that would be an advantage.

Sure, that bit was referring to the remainder of his post, where he did illustrate several ways rich folk can legally avoid taxes - methods generally unavailable to lower-income brackets. I may have been a bit hasty in my quote-pruning.

As for the boating accident - cashing out through an exchange (and your bank reporting the >$10,000 deposit to your bank account to the IRS per regulation) isn't the only way to cash out.

Yah, but cashing out is another discussion. I'm really only talking about trading. Quite impractical to do big scale "day trading" through OTC.

There is no doubt rich people are able to get around taxes easier though.