Replying to Avatar Bill Cypher

I have seen a lot of posts about taxes and zaps. So let's do some math. Gift tax exemption in the US is currently $17000 per person. That is a lot of 69 sat zaps to the same person.

Let's say they want to bring in a lawyer and argue I got economic benefit from your meme, so not a gift. 69 sats is about a penny today. I only owe taxes on the gains though. Say I'm up 30%. I owe taxes on $.0033. Let's be generous to the IRS and assume short term rates. 20% of $.0033=$.00066 in taxes owed. I don't know what an IRS enforcement action costs, do you? Probably more than that.

This is exactly what becoming ungovernable is all about. Zaps are how we force them to give up on every disposition counting as a taxable event.
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Brick 2y ago

One could argue with the IRS that bitcoin/sats are a foreign currency and, as such, is only taxed from the date it is converted into usd by a bank.

I interpret this to mean that you could exchange bitcoin purchased years ago into usd and the only tax is the amount converted to pay your taxes in usd.

Since bitcoin only exists "online" they need to add language that describes the sovereignty of the Internet, as of now bitcoin's sovereign soil is the Internet. Which makes it a foreign currency in my mind. I'm not transacting bitcoin in the same place as I eat, live, sleep, etc. You couldn't even prove what sovereignty the nodes that facilitate your transactions follow, nodes are all over the globe.

https://www.irs.gov/individuals/international-taxpayers/foreign-currency-and-currency-exchange-rates

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