Quote from: newguy05 on March 31, 2014, 07:08:23 PM

Quote from: Peter R on March 31, 2014, 06:54:15 PM

Quote from: newguy05 on March 31, 2014, 06:50:50 PM

Quote from: Peter R on March 31, 2014, 06:43:28 PM

Quote from: newguy05 on March 31, 2014, 06:39:03 PM

File and report EVERY SINGLE bitcoin transaction...Obviously that can never function.

Check out the concept of ZGL wallets and coins here: https://bitcointalk.org/index.php?topic=531135.0

This guidance was a positive as it gives clarity to larger players interested in entering the bitcoin space.

...There is unfortunately no way around this, unless IRS changes the ruling.

No way around what? Did you read the thread? ZGL wallets (once available) would be an effortless way to ensure compliance with US tax laws should you choose to report to the IRS. What are you suggesting is the problem with the concept? The guidance that bitcoin is property seems actually helpful.

it's just an automated way of reporting your gain/loss and best effort algorithm to match cost basis = sale price. that's been used for decades in the financial market as a way to simplify tax reportings.

Yes. It makes it very easy to comply with US tax law regardless of how many transactions you make.

We still have not received clarity on which transactions should voluntarily be reported. There is a strong argument that transactions that result in a loss (or at least no gain) do not need to be reported. Otherwise, we'd be required to report to the IRS every second-hand item we sell on Craigslist.

ZGL works regardless of the reporting requirements, although you have better privacy if you only report the swaps where you realized a gain.