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Bitcoin goes legit by the IRS

Discussion in 'CryptoCurrency' started by jazzc, Mar 28, 2014.

  1. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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  2. Panther28

    Panther28 Elite Member

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    At what point in using digital currency do they then plan to tax us at? Does this mean if i have 1 million in diablo 3 coins, i should be declaring it, and can offset my expenses against it?
     
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  3. asap1

    asap1 Jr. VIP Jr. VIP

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    Fuck the government, why dont we over throw them? Sticking their faces into every and anything they wish

    The constitution starts off with "We the people" damn public schools dont teach you that tho
     
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  4. RosuC

    RosuC Regular Member

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    It means that the currency, even virtual one, has to be taxed if is becoming a stock/trading tool. I don't think that the ingame coins will be considered the same, unless you want to sell them for real/virtual money. I was sure that will arrive to this - they can't let such a treasure to "run" without applying the tax on the transfers.
     
  5. lancis

    lancis Elite Member

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    Which means.. as long as you dont convert Bitcoin to USD there is nothing to tax?
     
  6. MasterMillionaire

    MasterMillionaire Junior Member

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    Good news that USA wont take them down and use this to get some $$$ for themselves.

    No need to worry about USA taking them now from now on i guess. Really good news and if USA approve them others will follow
     
  7. Execute

    Execute Supreme Member

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    Wonder if it counts as a capital investment that can be written down against profits, doubt it but that would be pretty good.
     
  8. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    And now regulation will follow and bastardize it.
    So they expect you to report and they will charge you capital gains tax.
     
  9. Biznik

    Biznik Regular Member

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    Diablo 3 coins do not fall under the IRS's definition of a virtual currency. Why don't you take a few minutes to actually read the IRS's announcement (if you can understand what they are saying)
     
  10. youmakeme

    youmakeme Power Member

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    The government wants a hand in anything that they can make money from. This what government are suppose to do... spend spend and spend at the expenses of the people who value add and make the money.
     
  11. twitter.followers

    twitter.followers Elite Member

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    I guess we would see a rise again in the bitcoin prices soon.
     
  12. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    what about those "missing" trillions of tax dollars they can't locate???
     
  13. bertbaby

    bertbaby Elite Member

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    I'm not sure what this means for Bitcoins because according to the IRS you should also be declaring money from all activities including all illegal activity income such as drug dealing. In fact the ruling states that this does not confer legal status to Bitcoins, "but it does not have legal tender status in any jurisdiction". It just means they are aware of Bitcoins and they'll get their pound of flesh from anywhere. I assume they expect their money if you cash in and make a profit.
     
  14. lancis

    lancis Elite Member

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    Reporting is ok by me. What I dont understand is how they are going to tax a barter.
    If Bitcoin is a property, then I can exchange it for another property without any tax.

    And if I can do the above, it makes no sense to use USD and pay taxes.
     
  15. Gogol

    Gogol Elite Member

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    Though I am not into coin trading, but I hope Indian Govt also takes this as an example and legalize the trading too. It's only gonna earn them taxes.
     
  16. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    I don't think it will apply here.
    http://www.irs.gov/uac/Like-Kind-Exchanges-Under-IRC-Code-Section-1031

    I don't know much about US Tax law but isn't any tax liability in a like for like transaction just deferred?
    http://en.wikipedia.org/wiki/Internal_Revenue_Code_section_1031
    http://www.law.cornell.edu/uscode/text/26/1031
    http://en.wikipedia.org/wiki/Like-kind_exchange
    http://homebuying.about.com/od/investmentproperties/a/102008_1031Exch.htm
     
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  17. Techxan

    Techxan Elite Member

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    You are actually supposed to report barters already.
     
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  18. bertbaby

    bertbaby Elite Member

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    Yep, bartering is taxable.
     
  19. madoctopus

    madoctopus Supreme Member

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    Unexpected? What are we missing here? Why would they do this?
     
  20. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    This means it 's not going to end up banned like weed ;)
     
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