[andrewla]

If someone raises chickens from eggs; pays for feed and cares for them until they are full-size, and then sells them, he has to pay taxes on that income, even though he already paid for the food and the upkeep. There's no double dipping here.

You can find an accountant who can give you advice on how to account for the cost of mining the bitcoin to reflect your effective cost basis (or wing it; the IRS has reasonably good instructions for this sort of thing).

If you go to Newegg and buy stuff, you are obligated under US tax law to pay the capital gains taxes based on the fair market value of the products purchased. If you go to a bitcoin meetup and sell with cash, you are still obligated to pay taxes.

Your legal obligations are clear; whether you can commit the perfect crime or not and get away with it is another matter.

[grosswait]

Except it is double dipping, we've just come to see it as the norm. Somewhat similar to Comcast wanting to charge Netflix for the data you've already paid for.

[Akujin]

> If you go to Newegg and buy stuff, you are obligated under US tax law to pay the capital gains taxes based on the fair market value of the products purchased. If you go to a bitcoin meetup and sell with cash, you are still obligated to pay taxes.

I recently bought a GTX 1080 TI with USD

Amazon wanted to charge me 7%. Newegg charged me no state tax.

Which do you think I went with?

Like our president said.

> "I'm smart for not paying taxes." - The president Source: https://www.cnn.com/2016/09/26/politics/donald-trump-federal...

This is also why people shop in Delaware. I wonder how many of those people reported their purchases to Pennsylvania.

[koolba]

Newegg is not obligated to collect sales take from you if they don't have a nexus in your state. Amazon has a nexus almost everywhere and thus collects sales tax from you regardless of where you order from. That's only true for orders place with Amazon itself; independent sellers at Amazon are responsible for specifying their own taxes that will be collected.

None of this, whether it's collected or not, eliminates your requirement to pay the sales or excise tax of your home State. In fact, if you go out of your way to order something or perform a transaction in a way that explicitly evades sales tax then you could be in legal trouble with your State's tax agency.

They might not care about a $200 graphics card but they do go after large offenders. Here's an example: http://www.nj.com/mercer/index.ssf/2017/05/broker_from_princ...

> > "I'm smart for not paying taxes." - The president Source: https://www.cnn.com/2016/09/26/politics/donald-trump-federal....

> This is also why people shop in Delaware. I wonder how many of those people reported their purchases to Pennsylvania.

Avoiding paying taxes through legal means is smart. Evading paying taxes is illegal.

[Akujin]

Yea.... I'm sure you report all your purchases at the duty free as soon as you get to American soil.

[toyg]

Duty-free goods have special dedicated legislation in most countries, I assume in the US too.

[dmoy]

Up to like $800 or something, unless I'm confusing it with yet-another-limit in the tax code.

[UncleMeat]

Why do you think we are supposed to have sympathy for tax evaders? The debt is shared. I have to pay to cover your evasion.

[toomuchtodo]

> Amazon wanted to charge me 7%. Newegg charged me no state tax.

You're legally obligated to remit that sales tax to your state Newegg didn't collect, and if you don't you're breaking the law.

Avoiding taxes is legal, evading them is illegal.

Edit: Announcing you’re evading taxes in a public forum that will eventually be archived just seems like a bad idea.

[maxerickson]

In my state goods purchased from out of state are subject to use tax which has some differences with sales tax.

(like you can pay an income based amount to cover small purchases up to some total rather than calculating the exact tax due)