Quote from: Robert Paulson on March 26, 2014, 08:58:24 PM

Quote from: smooth on March 26, 2014, 08:53:32 PM

Quote from: Robert Paulson on March 26, 2014, 08:44:11 PM

Quote from: smooth on March 26, 2014, 08:30:09 PM

https://bitcointalk.org/index.php?topic=531135

there is no way the IRS will allow people to avoid paying taxes using this trick.

It's not a trick and it doesn't "avoid" taxes as the post explains. You will still pay the same taxes, just not in the form of every $1 transaction being a taxable event.

Quote

if this really catches up i am sure they will clarify that the determining exchange rate for tax purposes is the median of all inputs or something of that sort.

So now you are arguing on the basis of what you think the IRS will do in the future, and you expect anyone to pay the slightest attention to your baseless speculation? Good luck with that.

Identifying lots on capital gains transactions has been done for decades in amounts totaling billions or more likely trillions of dollars (by institutional investors). Closing this non-loophope doesn't appear to be a high priority for the IRS.

Moreover, even if buying a cup of coffee became a taxable event, who cares? This is not 1970. We have this these things called computers, smartphones, etc. They are good at bookkeeping.

This thread is pointless.

no this thread is not pointless.
i don't have to keep track of any capital gains when i use fiat currency why should i do so with bitcoin.
this is a clear attempt by the government to make bitcoin unattractive to use as money.

That's what YOU think. But if you've ever used multiple currencies you'd know that yes, you DO have to keep track.

Consider the American who lives and works in Australia. (S)he is paid in AUD. Buys a house using those AUDs and then sells it years later, again for AUD. Mr. IRSMan expects everything marked to USD for tax calculation purposes. It's actually possible to end up owing taxes on the LOSS of the sale of real estate under this situation...so you'd better be keeping track of exchange rates.

But doesn't this sucky ruling come with a silver lining? I mean, if Bitcoin is property, doesn't that mean that it's no longer a currency therefore exchanges no longer need a money service bureau license? And doesn't that mean that US Treasury owes Mt Gox their Dwolla account back? As well as any other exchanges whose funds they've stolen for not registering?

And isn't this treatment like the way gold is treated?