I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
As per tax is concerned i don't think that the bitcoin is a currency on which tax is applicable. Unless someone converts the bitcoin into the real money the money is tax free. You need to understand that if the trading is between bitcoins then there is no way you could be charged tax instead you have to pay fees so that the transaction is being processed successfully and smoothly. I think this would help you to know the difference.
Yeah that's what i am thinking right now since it is completely decentralized and no government can put a tax to it but if those government are accepting Bitcoin for a tax payment i guess it's a different story. But since the transaction fees are too expensive i think a micro payments is not a good choice for payment. Why not exchange it into a real cash to pay for their taxes?