Quote:
Originally Posted by L-Pink
Correct you pay tax on the gain.
In a bitcoin transaction almost every transaction will be for a different amount value wise than the bitcoin was acquired for. This variance on a first in/first out value basis will need to be accounted for to be IRS compliant.
This alone makes bitcoins worthless as a form of payment unless you are trying to scam the system.
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LOL I dont know about every state and can only comment on the state of XX. Their is a reason why their is a place on the auto title for sale price. This is so when you change title ownership you have to pay sales tax. Dosent matter how many times the car is sold. Everyone must pay tax. You are exactly correct.. you must pay the tax again.