Is this FIFO, do wash rules apply??
It is stupid to think you have to pay taxes on mining and then pay taxes again on use(assume btc is up) which you probably already paid taxes on the goods anyway.
So triple taxation for mining and using btc?
This is a shot directly at btc. Make is so unfriendly no one can possibly use it.
Given that the IRS has decided bitcoin is property (like shares of stock) I would assume wash sale rules apply.The triple taxation argument is a strawman. It's no different than 1) paying taxes on your salary, 2) using that salary to make money in the stock market and paying taxes on the gains, and 3) spending that money and paying sales tax on what you buy.
Let's make this clear. If BTC is worth $500 when you mine it and $600 when you spend it, you pay taxes on the $500 of mined value when you mine it. You pay taxes on the $100 increase in value when you spend it. The total $600 essentially only gets taxed once.
The idea that I generate a bit of tax bookkeeping every time I buy a bitcoin latte *is* rather annoying. What I would do personally in that situation, rather than keeping track of and reporting each individual transaction, is to total them up on a monthly, quarterly or annual basis, and report as an aggregate transaction: Spent a total of 2 BTC for 40 dinners worth a total of $1200. Cost basis of the 2 BTC was $900, so a net taxable gain of $300. A BTC wallet app could easily keep track of it.
Edit: On second thought, wash sale rule probably doesn't apply to bitcoin as it's not a "security".