10 ms·

Also, how do you declare bitcoins on your taxes? It's taxable income, right?

• andreyf 16y ago
  Aren't transactions that occur on bitcoin p2p and "anonymous"? I think Neal Stephenson once predicted such a system would lead to the end of nation states (since they could no longer collect taxes)...
  • njharman 16y ago
    Many, many people have used "p2p" and anonymous means to attempt tax evasion. Nation states are pretty good at passing laws to illegalize their activities and throwing those people in jail. Nation states will simply make anything that threatens them illegal. See Open Internet in China for instance. Fringe and criminal types will always get around it (always have). But the mainstream, the masses will remained controlled by nation state.
    • JonnieCache 16y ago
      >Many, many people have used "p2p" and anonymous means to attempt tax evasion Suitcases full of used nonconsecutive notes have always done up until now.
  • travisp 16y ago
    Suppose someone exclusively receives money via bitcoin and their name is in no way linked to the bitcoin address. Yes, they are probably anonymously receiving money. But, if they are purchasing any actual physical goods, the IRS knows they are receiving money somehow. They better be reporting them as the IRS likes to look into people who have spending that is out of line compared to their income. Also, from the FSF announcement: "Because of the way the system works, contributions to this address will not be fully anonymous."
• quanticle 15y ago
  Arguably, its not taxable income now, since the Bitcoins (just like shares or even casino chips) don't have any value until they're cashed in. If and when the FSF cashes in its Bitcoins, it'll have to declare them as income.