The IRS requires that every transaction involving the "sale or exchange" of
a capital asset must be treated as either a capital gain or loss, with
certain exceptions which are generally spelled out rather clearly.
Therefore using e-gold involves a sale or exchange of a capital asset (gold
holdings) to receive some property whether it be currency or a good or
service.
On Thu, 21 Dec 2000 10:53:27 +1000, markab23 wrote:
> I agree whohartedly.
>
> Sidd you hit the nail on the head.
>
>
> this was what i was trying to say, but in a less sophisticated manner.
>
> the Tax Office usaually looks at the intention of the transaction and/or
> business.
>
> >===== Original Message From "Sidd" <[EMAIL PROTECTED]> =====
> >Hi,
> >
> >I have been watching this conversation and am interested in the view
> >that most people are taking. I don't have any experience of US tax
> >laws or the IRS code on capital gains tax, but in most countries,
> >there are fairly open guidelines about capital gains taxes that are
> >"interpreted" on a case by case basis. For instance, if you bought and
> >lived in your family home for 6 years, then after having a couple of
> >kids, sold and bought a larger house, even large profits realised in
> >the sale of your first home would not usually attract capital gains
> >tax. If on the other hand you bought and sold 3 houses in a month, you
> >would certainly attract some capital gains tax. The difference is that
> >you are speculating.
> >
> >It would be open to interpretation if utilising e-gold for daily
> >transactions could be considered as speculating, since your
> >"intention" is not to create profits by trading gold. In fact on many
> >daily transactions, you may even lose profit, meaning you could claim
> >capital losses and reduce your tax burden!
> >
> >Another point that everyone here seems to have completely overlooked
> >is the fact that accounting software is extremely complex stuff that
> >does an incredible job of looking after the finances of a business.
> >Even large businesses usually have more data entry personnel than real
> >accountants and bookkeepers these days, the software does it all. If a
> >large firm saw the advantage of using e-gold for thousands of
> >transactions a day as has been suggested, it would be an INCREDIBLY
> >SIMPLE matter to have an accounting module added to their existing
> >software that would do ALL the extra work necessary to take into
> >account the capital gains/losses and include the results in the
> >various balance sheets. All that "may" be necessary, depending on the
> >structure of the businesses payment model, would be an extra field in
> >the input form like: e-gold transaction? Yes|no. this is a total
> >no-brainer :-)
> >
> >Have you ever been to a duty free shop at the airport? Those guys
> >accept any currency you could hand to them without the blink of an
> >eye, select the appropriate currency on the register, and without a
> >twitch, complete the transaction AND give change. That is a MUCH more
> >complex operation than accepting e-gold and I guarantee the DF shop
> >owner doesn't lose any sleep over his accounts. It is all handled by
> >his software.
> >
> >If you want to use information age currency and solutions, you have to
> >stop thinking of "industrial age" methods and move on to the relevant
> >technology. Anyone who can't see how simple it all really is, just
> >doesn't realise the capabilities of modern information systems.
> >
> >Regards,
> >
> >Sidd.
> >
> >
> >
> >-----Original Message-----
> >From: [EMAIL PROTECTED]
> >[mailto:[EMAIL PROTECTED]]On Behalf Of Glencannon
> >Group Ltd.
> >Sent: Thursday, 21 December 2000 12:21
> >To: e-gold Discussion
> >Subject: [e-gold-list] Re: E-gold scam survey
> >
> >The discussion we are having concerns the issue of whether e-gold is
> >appropriate for US companies. NOt Belize companies. If you were
> >located in
> >Belize, or some other tax haven this whole discussion would be
> >irrelevant.
> >(MAYBE - A Belize company that does business in the US is bound to
> >observe
> >US tax laws.) But I suspect that most users of e-gold are neither
> >foreign
> >residents nor US residents who have properly structured their business
> >activities abroad. As such they are stuck with the stinking IRS!
> >
> >On Wed, 20 Dec 2000 12:49:11 -0500 (EST), [EMAIL PROTECTED] wrote:
> >
> >> At Wed, 20 Dec 2000 08:43:42 -0800 (PST), "Glencannon Group Ltd."
> ><[EMAIL PROTECTED]>
> >> wrote:
> >> >
> >> >Of course accounting is a headache, and if you are small business
> >company
> >> >or
> >> >individual with a small amount of transactions, you can pretty
> >much
> >> >ignore
> >> >it. But if you are business doing millions of dollars in
> >business,
> >> >you
> >> >can't.
>
> >>
> >> I thought glencannongroup was based in Belize.
> >>
> >> Are you complaining about record keeping for the Belize tax system?
> >>
> >> I am curious because this would definately take Belize off my list
> >of
> >locations
> >> for an
> >> IBC that does its transactions principally in e-gold.
> >>
> >> don
> >>
> >>
> >>
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> >
> >Glencannon Group Ltd.
> >http://www.glencannongroup.com/
> >[EMAIL PROTECTED]
> >[EMAIL PROTECTED] (for a more secure email)
> >fax: 419-710-4339
> >_*_*_*_*_
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> >
> >
> >
> >
> >
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