Quote from: Holliday on January 05, 2014, 07:49:27 PM

Quote from: Hawker on January 05, 2014, 06:32:38 PM

Quote from: Holliday on January 05, 2014, 05:29:04 PM

Quote from: Hawker on January 05, 2014, 01:40:16 PM

Spending the Bitcoin means the gains are not realised so not liable to CGT.

Whoa... This is entirely wrong in my jurisdiction. Please understand that this is a global forum before making such blanket statements.

What's your jurisdiction? I don't believe there is any jurisdiction in the world that charges CGT if the gain is not realised.

The USA. Everything I have read says that purchasing items directly with Bitcoin is most certainly realizing your gain and subject to capital gains tax. Do not take this as tax advice, consult a professional.

http://www.bitcointax.info/

Are you suggesting that I can purchase a 3 million dollar home and as long as I pay with Bitcoin (lets say I obtained them in 2010) that I do not need to pay capital gains on those coins? That's what I understand when you say, "Spending the Bitcoin means the gains are not realized so not liable to CGT".

That's basically saying that items used in barter are not subject to capital gains tax. I seriously doubt such a huge loophole exists.

Um - thats exactly what I am saying. Forget bitcoin and pretend that you have $1 million in copper futures which you paid $100k. You trade them for a rental unit that would have sold for $1 million. My understanding is that no CGT is payable.

Unless the US treats bitcoin as a currency, it will be treated as a commodity and thus the same rules apply.

Feel free to tell me I am wrong. I've read your www.bitcointax.info link and it leads to http://www.law.cornell.edu/uscode/text/26/988 which seems to say the same thing as me but you may know better.