The Tax Man cometh for thy Bitcoins!
http://www.zerohedge.com/news/2014-03-26/irs-slams-bitcoin-retroactive-tax-rules-gold-next
First currency wannabe's, later gold & silver?
Catch me if you can!
(Hope you IRS goons can scuba!)
I call BS.. Applying Capital income rules to bitcoin as an investment seems unsurprising. I always assumed that such would apply if you followed the rules.
Gold and Silver are not only taxed as capital gains, but as "collectibles" - at 30% on your gain. The thing is the govt can't tax you on it if they don't know about it. If your bitcoin firm doesn't send the IRS forms reporting your gains, as a stock broker would, then the IRS would need to audit you to find out. And how would they ever find out you mined some bitcoin?
Same with Gold.. if your gold dealer doesn't report your sale ( which was really what that gold provision in Obamacare was about) then they don't know about that either. You sell for cash or barter and they don't know squat, and since the IRS isn't following the rules and has become a draconian punishment wing of the fascist Obama administration, the honor system is breaking down and people aren't voluntarily following the rules anymore, but I don't think these rules are "new"
But my take on Gold or Bitcoin is they are hedges against dollar inflation. You buy and then you don't sell. When gold was near $2000 and silver was over $40, I wasn't even tempted to sell, not that I could with everything lost in the boating accident. . Perhaps if I was smarter I would have dredged them up and sold and bought back in after the drop which really you know TPTB would engineer ( but at that time you were wondering, why haven't they dropped it already?) but even when that drop came, prices were still 2-3 times higher than they were when I bought.
If I were single, I would be following Ann Barnhardt in her strike-- just stop filing, empty my bank accounts and make them come for it. I agree with her its the right thing to do, but that forces the confrontation that will arrive at my door sooner than it might arrive, and risks my family and children. You will note part of Ann's strategy is to not earn much..and its unlikely the IRS will target her ( unless its for political reasons) because the gain they would get on her back taxes owed on 20K of wages isn't worth even an hour of a IRS Thugs' time. I am not ready for that yet. I am Still filing and paying significant tax bills, and really that income too will come to an end sooner or later of is own accord as the collapse continues, so may as well ride that train till it stops and compete my preps as well as I am able. I would probably need another 3 years to really finish everything I want to finish, but I agree with Schiff, I don't see this lasting Obama's term.
