notorial dissent wrote:In other words, if you bought it or mined it for nothing and then let it appreciate the way it has lately, and then sell/convert it, you're in for a big ole whopping capitol gain tax.
That's no real surprise though. This situation was going to break one of two ways, either in favor of the large institutional investors or in favor of the cypher punks who want to was it for currency. No one seems surprised that the IRS choose the Winklevoss twins over ScrewTheFed4Life36, considering that the latter is unlikely to report their taxable transactions even under favorable conditions.
Edit: I wonder if anyone has started rubbing the Gox DB leak against the block chain to find tax evaders. Does the IRS have a "fruit of the poisoned tree" policy for their snitches?