[devindotcom]

Of course for the many people who will do simple point-to-point purchases with bitcoin, these rules won't really apply, since those transactions and gains aren't detectable unless they're declared.

On the other hand, with retailers and 3rd-party apps adding Bitcoin payment layers, an increasing amount of bitcoin purchases will be on record and associated with an address or bank account in some way or another. I think it's good - we get both worlds and bitcoin grows.

I think they also did a good job of doing this without having it come off stiff or overly specific to Bitcoin. Doubtless things will be adjusted over the next couple years, but this is a big step in the right direction. (I also anticipate a couple small steps in the wrong one, but that's to be expected)

[scoofy]

>these rules won't really apply, since those transactions and gains aren't detectable unless they're declared.

Well, this is only assuming you use precautionary measures to protect your identity. If you, for example buy a stereo from a store, and use bitcoin. If you provide any information about yourself, such as your name/address/email/etc. Then the gov't has easily obtainable information that can connect you to other parts of the block chain. At which point, you're toast if the feds want to come after you for tax evasion.

Bitcoin is a great tool, but don't think it's going to open up some anarco-libritarian fantasy camp. It's not. Pay your taxes people.

[hisabness]

if i buy $1 worth of bitcoin today and the price of bitcoin appreciates to $10 per bitcoin, i'm now wealthier and won't have to pay taxes as long as i transact in bitcoin. for example, i can probably now by 10 cups of coffees instead of one as long as i can pay for the coffees in bitcoin.

[gnaritas]

> i'm now wealthier and won't have to pay taxes as long as i transact in bitcoin.

False, you clearly aren't understanding what's being said. Transacting is a taxable event, you owe money on the gains.

[gamblor956]

Just to make it clear what gnaritas is saying:

As long as you hold your bitcoins and do nothing with them, you're not subject to tax. You are taxed on your bitcoin gains when you transact in them (or, correspondingly, may take a loss) because that is when your increased wealth is actually treated ("recognize") as income.