Quote from: Peter R on March 28, 2014, 09:20:59 PM

Quote from: jbreher on March 28, 2014, 08:58:09 PM

Here's the funny thing though. Rulings are merely administrative interpretations of the Regulations as encoded in the CFR. The Regulations, in turn, are the Commissioner's best effort at interpreting the Statutes as encoded within the USC. The USC is the best effort attempt at harmonizing all the bills that the Legislature passes. IOW, Rulings are not Law. They are three indirections removed from Law.

Further, Rulings are not binding - not even upon Inspectors, Auditors, nor the US Tax Court. And the US Tax Court is not really a court, as it is not a body according to Article III of the Constitution. US Tax Court is really an administrative tribunal. All decisions of the US Tax Court are appeal-able to a real Article III Federal Court.

I guess the last three paragraphs are just a long-winded way of saying that I expect the mining ruling to be overturned.

+1

My interpretation of the laws is that "hashers" are required to recognize mined coins as income at the time of mining, and miners when a "gain" has been realized.

again I'm likely wrong...but if the above means that if i mine whatever coin alt-coin bitcoin or whatever keep track of my 'gross income from mining" likely daily
or perhaps just when my pool dumps it on the blockchain address.....I'm golden?"

it is the holding and the coin in question going up in value 20% the following week the way bitcoin may or may not do... that you have to pay capital gains on from the above on top of the 'gross income" according to the IRS on that bump up in value as well..of the above scenario? .(do i have this correct?) if my coin from the pool dumps at a regular basis to my blockchain ie a record of the transaction i can show IRS in USA>....and i cash out at that point i have a date/time stamp of its worth on blockchain and a date time stamp of its $$ value as I cash it out same day say.....gross income from mining is met and no capital gains because i sold it for what it was worth when i mined it....ie directly......ie values match?

so if you treat the whole mining thing like a direct 'cash flow' kinda thing ...capital gains should not apply?

again probably wrong or being mr. obvious but all this makes my head hurt..use simple words I'm dense.

also IRS rule is unenforceable in current form IMHO..but just saying is that how it works more or less above?

Searing