It could be argued that the question of capitalgain/loss does not occur
unless you 'cash in' or bail out your e-gold.
You are actually holding gold not a currency set against it as far as I know.
Also tax offices also look at intention. If you are holding gold as a reserve
or as an investment the case for capital gain/loss is clear. but if you are
holding it for transactional purposes the case is no clearer than if you are
using fait funds for transaction purposes which also may rise and fall in the
market against other currencies. If you buy english oounds to buy something
in the uk and during the transaction the pound rises suddenly have you made a
capital gain?
A capital gain is based on the investment of funds for into a investment body
or subject which then returns a value ghigher than the original investment and
only if the funds are then retrieved.
This might all sound niaive and tell me if it doesnt make sense.>=====
Original Message From [EMAIL PROTECTED] =====
>> I guess what I meant by "recognition" and as I think about it I realize it
>> is a bad choice, is the IRS would recognize the receipt of e-gold as an
>> income transaction and not a capital transaction. If you could treat 1.00
>> in e-gold as income instead of worrying about capital gains and losses, it
>> would not be a problem.
>>
>> Glencannon Group Ltd.
>>
>
>The problem isn't that receiving 1.00 in e-gold isn't considered income.
>The problem is that USD flucuates against 1.00 in e-gold. This is what
>capital gains/losses are.
>
>It is the same situation if you hold onto GBP, JPY, CHF, etc... The USD
>flucuates against them as well. The IRS doesn't claim that they aren't
>valid currencies.
>
>The only way to get rid of the capital gains/losses problem is to peg 1.00
>of e-gold to x amount of USD.
>OR...
>You could just clear out your account at every possible instant. That way
>you can still accept e-gold, but not have the problem of capital
>gains/losses.
>
>Viking Coder
>
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