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.
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.
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.
Perhaps strawman, but unless I get do deduct the cost of mining from the equation, it is unfair to be sure. Not to mention quite difficult to track.
Also I don't think you can simply roll up your you liability into anything other then per transaction. The only way I know you can roll up stock transactions is if you have a broker license. Otherwise every sale must be meet with the purchase.