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"Now, every time I want to make a transaction, I need to keep track of my taxes. I know that some startups are already developing ways to keep track of this aut
by tlrobinson 13y ago
"Now, every time I want to make a transaction, I need to keep track of my taxes. I know that some startups are already developing ways to keep track of this automatically, but that's just an extra headache for the average consumer."
Fortunately we have machines that are really good at keeping track of numbers and adding them up.
I expect Bitcoin wallets will just calculate your taxes for you automatically.
- battani 13y agoI agree, but it just adds friction. Already, consumers are very comfortable using their credit cards. If you add the mental cost of thinking about taxes, especially when you have to pay capital gains when you pay for something (!!), that's a deterrent for most regular consumers.
- greenyoda 13y agoExactly. Many people have never had to fill out a Schedule D before and have no idea what long-term vs. short-term gains are, how to compute capital loss carryovers, etc. So their taxes would suddenly become more complicated just because they had a few dollars worth of capital gains/losses from Bitcoin.
- fpgeek 13y agoUnless they had an enormous amount of personal information, Bitcoin wallets couldn't possibly calculate your taxes for you automatically. At best, they might be able to calculate the potential trading gains and/or losses of your Bitcoin transactions (and even then there would be issues about how you divided your Bitcoin purchases and sales into lots and ...).
- tlrobinson 13y agoOf course that's what I meant, not your entire tax return.