normandoorman's comments

Their goal might be to harasss people into not using bit coin. This is a tax nightmare well outside of most peoples understanding.

Every transaction on the block chain is a taxable event. You need a program to calculate capital gains or losses for the tax year. That is my understanding. So you have a daily value, transaction fees, capital gain or loss.

There is a huge flaw in this logic from the IRS. If it is a possession, then I can give it away. Like a fudgable dollar I gift away, you cannot tax me on every transaction that doller is engaged in.if I give away the wallet and the dollar, nothing changes. The USA is just trying to stop bit coin with taxes.