True if you hold the e-gold, its ok. But if you use there is a question.
And if you cash out, your screwed. It is just too much accounting work to
tolerate. That is why no legitimate tax paying business can afford to use
e-gold. It will cause their accounting departments too much headaches. It
is useful for non-taxpaying entities only. And as such e-gold will always
have a very limited exposure.
On Wed, 20 Dec 2000 11:22:01 +1000, markab23 wrote:
> 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
> >
> >---
> >You are currently subscribed to e-gold-list as: [EMAIL PROTECTED]
> >To unsubscribe send a blank email to
[EMAIL PROTECTED]
>
> ---------------------------------
> Powered by http://www.telstra.com
>
>
> ---
> You are currently subscribed to e-gold-list as:
[EMAIL PROTECTED]
> To unsubscribe send a blank email to
[EMAIL PROTECTED]
Glencannon Group Ltd.
http://www.glencannongroup.com/
[EMAIL PROTECTED]
[EMAIL PROTECTED] (for a more secure email)
fax: 419-710-4339
_*_*_*_*_
For an e-gold funded Debit Card: http://www.glencannongroup.com/genucap/
_______________________________________________________
Send a cool gift with your E-Card
http://www.bluemountain.com/giftcenter/
---
You are currently subscribed to e-gold-list as: archive@jab.org
To unsubscribe send a blank email to [EMAIL PROTECTED]
