Quote from: cryptoanarchist on April 21, 2014, 07:07:23 PM

Quote from: roy7 on April 21, 2014, 05:48:44 PM

Quote from: precrime3 on April 21, 2014, 04:36:51 PM

Quote from: franky1 on April 16, 2014, 12:37:46 AM

OP needs to learn, holding bitcoin is tax rate of ZERO. but holding fiat in his personal account after selling the bitcoin. he needs to pay tax on that fiat gain.

but i do agree people are silly when it comes to saying "bitcoin is doomed" and here is why

1. people will find other ways to not need FIAT, thus not needing to claim FIAT gains
2. the IRS wont care about useless / worthless items. IRS have categorized bitcoin, thus it has proven bitcoin to be a valid store of wealth.

I thought tax was based on mining, transaction, and capital gains of fair market price? So it doesnt matter? Or am I incorrect?

You are correct. Mining causes a taxable event (as income) each time you mine new coins, based on the FMV of the coin at the time you mine it. Holding bitcoin isn't taxable (same as holding stocks), but mining or spending/selling/trading the bitcoin is.

Of course, no one - including the IRS - can show ANY evidence that these rules apply to anyone.

That's true, but always that random audit.
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