Quote from: Holliday on March 27, 2014, 11:34:38 PM

Quote from: don giovanni on March 27, 2014, 11:30:55 PM

Quote from: Holliday on March 27, 2014, 11:07:50 PM

Quote from: don giovanni on March 27, 2014, 11:02:57 PM

Quote from: Holliday on March 27, 2014, 10:56:17 PM

Either you "own" the private keys which control the address or you don't.

Ive use online wallets, i do not own the private keys to those, the owner of the wallet site does, i am given a password to access those funds, are they no longer mine? Ie also lost many wallets and the private keys held within, does that mean i never owned them in the first place?

Quote from: Holliday on March 27, 2014, 10:56:17 PM

Either you have documentation from an exchange or you don't.

I dont because i dont use an exchange to buy/sell, am i required to pay 40% tax because i choose not to use an exchange?

No, this means you are making choices / taking actions which could have a negative impact on your financial situation by increasing the amount of taxes you may have to pay.

I would suggest you start making new choices / taking different actions which would have a positive impact on your financial situation by decreasing the amount of taxes you may have to pay.

There you go, the IRS has successfully deanonymized bitcoin.

I'm confused. Do you want to remain anonymous or do you want to file your taxes with the IRS? You are correct, you can't do both, but this has nothing to do with Bitcoin. These are choices you must make as an individual.

I want to stay true to bitcoins original purpose, to give power back to the people over their money. What this ruling has in effect done, as evidence by your "better shape up or ship out" response to my dilemma (which is reasonable to assume would be representative of most taxpayers), is change the nature of bitcoin from a "keep your nose out of my business" stance to a "if i want to get favorable tax status i should register all my activities with an official exchange and report this to the government" mentality.

Im not anti-government, nor am i trying to dodge paying my dues, but i dont like to trade on an exchange, you know how much money i lost on mt-gox? $0. Do you know how much i will lose on bitstamp when it gets hacked? $0. Now the IRS is in effect saying, you had better use those services or else we will hit you with a full-taxable amount, that is not fair, nor is it reasonable to presume a small time speculator like myself would have the ability to produce solid evidence of a p2p trade. In fact, its not reasonable to presume anyone has the ability to provide evidence of a p2p trade, this is no more possible than if you sold something on craigslist to a stranger for cash and then get audited and asked the details of the transaction, who was the buyer? prove that you sold the item in question and not illegal drugs or stolen property. This is no different, they arent taxing bitcoin, they are effective threatening the entire bitcoin community with fines and jailtime for doing anything that isnt registered with the government. This is what i mean when i say deanonymized, its not hiding, its having nothing to hide from.