IRS Ruling a Mjor Hit to Bitcoin

According to the IRS, Bitcoin is property, not currency, thus it is subject to property gains and losses tax.
This will hurt the anonymity of users, as well as make Bitcoin taxable.

Full story here:

http://www.businessinsider.com/irs-bitcoin-is-property-not-currency-full-release-2014-3

 

Technically they are property, just like RSGP. They're data on a server/computer.

 

No shit? You only pay taxes if you sell them. Capital gains.

 

Not really a hit, obviously they want you to declare your capital gains in usd. Like someone said same for rsgp probably.

 

Hopefully it's not a big hit.

 

I didn't read the whole thing, (tl;dr ), but how would one declare anything considering BTC is anonymous? I mean like, it's not exactly like they could track you down or anything. (Could they? ._.)

 

Bitcoin is everything but anonymous in most cases.

 

^This

I'll find the article when I get home from work but it was on the Forbes website I think. They bought some marijuana from the first Silk Road and then had someone trace the BTC or something like that.

 

looks like this panned out - with BTC around $440 right now, down from $600+ a short time ago, and a crackdown by the Chinese threatening to push it even lower, the IRS ruling was only the first of a dramatic turn in Bitcoin's future.