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Try this in the US and you can count on a Secret Service raid.

pyre 14y ago
I think that eventually, the government will learn to love BitCoin. Just think of what the states could do to tax law. During an audit, they could require your BitCoin wallet ID to verify that you paid the voluntary sales tax accurately. (Not to mention it would probably be easy to write a program to automatically calculate this from a BitCoin wallet ID for the tax payer when doing their taxes)
- cpursley 14y ago
  Doubtful. The 'state' is 10 years, or more, behind. Bitcoin is the beginning of the end for the nation-state. The city-state will regain importance and we will see the rise of the virtual replacement of the 'state', which is happening now.
  - pyre 14y ago
    When I say "state" I mean the US "states," not the US federal government. The "province" level in Canada.
    - cpursley 14y ago
      I know. I was making a broad statement about the future of government. Bitcoin is a huge threat to tax collection on all levels.
      - gamblor956 14y ago
        No, it's not. Bitcoin is simply another currency. Governments have been dealing with that for hundreds of years. Bitcoin's fatal flaw is that it is not anonymous. It's even less anonymous than cash. Given enough justification, governments can and will develop systems for tracking bitcoin flows, the same way they already have systems for tracking the flow of paper cash.
adestefan 14y ago
Can you please tell me why think there would be a Secret Service raid? I could sell you my house for 4 chickens and no one would care. The bigger issue is that if you're making a capital gain when selling, then you better damn well report that on your taxes. And note that the realization is at the time of the sale, not when you sell the bitcoins.
- cpursley 14y ago
  In the United States, financial transactions must be done in US currency. If you report it on your taxes in US currency equivalent, you might be ok. But I bet it would set up a red flag. You can't even own a bank account in a foreign currency here.
  - adestefan 14y ago
    I still have no idea where the Secret Service fits into this. I will admit there is a tax issue about what the realized gain or loss is by trying to attach a value to the bitcoins, but that's an IRS issue and no one is going to come and raid your house.
  - raldi 14y ago
    Do you think it's illegal in the US to trade your car for two motorcycles? If not, why do you feel it's illegal to trade your house for some Bitcoins?
  - ios84dev 14y ago
    Huh? I know lots of people who have bank accounts in other currencies. Any taxes due on them obviously have to be paid in USD but there's no inherent law against it afaik.
    - cpursley 14y ago
      Really, which bank? Is it a true foreign currency account, or based on that currency's index. Personally interested.
cpursley 14y ago
Don't think so? http://www.alt-market.com/articles/92-fbi-raids-chuck-e-cheese-for-undermining-us-currency http://www.alt-market.com/articles/92-fbi-raids-chuck-e-chee... http://en.wikipedia.org/wiki/Steve_Jackson_Games,_Inc._v._United_States_Secret_Service http://en.wikipedia.org/wiki/Steve_Jackson_Games,_Inc._v._Un... http://en.wikipedia.org/wiki/Patriot_Act,_Title_III http://en.wikipedia.org/wiki/Patriot_Act,_Title_III
- freehunter 14y ago
  The Alt Market article is a satire. The Steve Jackson article is not about alternate currency. Maybe you should read your links before posting them.
  - illuminate 14y ago
    We need a phrase for bizarro-LMGTFY situations where someone googles a few words and links to unrelated content simply because they were in the first page of results.

pyre 14y ago

I think that eventually, the government will learn to love BitCoin. Just think of what the states could do to tax law. During an audit, they could require your BitCoin wallet ID to verify that you paid the voluntary sales tax accurately. (Not to mention it would probably be easy to write a program to automatically calculate this from a BitCoin wallet ID for the tax payer when doing their taxes)

cpursley 14y ago
Doubtful. The 'state' is 10 years, or more, behind. Bitcoin is the beginning of the end for the nation-state. The city-state will regain importance and we will see the rise of the virtual replacement of the 'state', which is happening now.
- pyre 14y ago
  When I say "state" I mean the US "states," not the US federal government. The "province" level in Canada.
  - cpursley 14y ago
    I know. I was making a broad statement about the future of government. Bitcoin is a huge threat to tax collection on all levels.
    - gamblor956 14y ago
      No, it's not. Bitcoin is simply another currency. Governments have been dealing with that for hundreds of years. Bitcoin's fatal flaw is that it is not anonymous. It's even less anonymous than cash. Given enough justification, governments can and will develop systems for tracking bitcoin flows, the same way they already have systems for tracking the flow of paper cash.

adestefan 14y ago

Can you please tell me why think there would be a Secret Service raid? I could sell you my house for 4 chickens and no one would care. The bigger issue is that if you're making a capital gain when selling, then you better damn well report that on your taxes. And note that the realization is at the time of the sale, not when you sell the bitcoins.

cpursley 14y ago
In the United States, financial transactions must be done in US currency. If you report it on your taxes in US currency equivalent, you might be ok. But I bet it would set up a red flag. You can't even own a bank account in a foreign currency here.
- adestefan 14y ago
  I still have no idea where the Secret Service fits into this. I will admit there is a tax issue about what the realized gain or loss is by trying to attach a value to the bitcoins, but that's an IRS issue and no one is going to come and raid your house.
- raldi 14y ago
  Do you think it's illegal in the US to trade your car for two motorcycles? If not, why do you feel it's illegal to trade your house for some Bitcoins?
- ios84dev 14y ago
  Huh? I know lots of people who have bank accounts in other currencies. Any taxes due on them obviously have to be paid in USD but there's no inherent law against it afaik.
  - cpursley 14y ago
    Really, which bank? Is it a true foreign currency account, or based on that currency's index. Personally interested.

cpursley 14y ago

Don't think so? http://www.alt-market.com/articles/92-fbi-raids-chuck-e-cheese-for-undermining-us-currency http://www.alt-market.com/articles/92-fbi-raids-chuck-e-chee... http://en.wikipedia.org/wiki/Steve_Jackson_Games,_Inc._v._United_States_Secret_Service http://en.wikipedia.org/wiki/Steve_Jackson_Games,_Inc._v._Un... http://en.wikipedia.org/wiki/Patriot_Act,_Title_III http://en.wikipedia.org/wiki/Patriot_Act,_Title_III

freehunter 14y ago
The Alt Market article is a satire. The Steve Jackson article is not about alternate currency. Maybe you should read your links before posting them.
- illuminate 14y ago
  We need a phrase for bizarro-LMGTFY situations where someone googles a few words and links to unrelated content simply because they were in the first page of results.