Quote:
Originally Posted by L-Pink
Unless you are a US citizen that doesn't want to commit tax fraud ?.
To be IRS compliant with a bitcoin transaction you would have to state the value of the bitcoin when acquired, the value when sold, pay tax on the appreciation.
In a bitcoin transaction almost every transaction will be for a different amount value wise than the bitcoin was acquired for. This variance on a first in/first out value basis will need to be accounted for to be IRS compliant.
For a US citizen to comply with bookkeeping requirements on a small transaction would be a major waste of time.
I'm not saying bitcoins are a bad investment, some have made a killing, I'm saying using them for minor everyday transactions isn't the same as spending a dollar bill.
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FIFO/LIFO?!!? This guy has double entry skillz!
Not to support bitcoins, but is that really true? I think you can roll up trades in non-real currencies to when you cash them, which I would do nightly if it was me. In other words, like options, they have no intrinsic value until they are cash. One could, theoretically, hold them for a period of time if one wished.