Tax on passive income

[Guest]

On another forum someone asked about taxation on income derived from property - passive income. I responded with a real world example; a bitcoin investment in LabRatMining. Specifically I bought bonds at about .1 BTC each which pay weekly dividends (since August '13 it has paid a total of .022 BTC per bond). Recently I posted how well things were going with this "tax-free investment!" Well... that was enough to cause one of the resident quatlosers in disguise there (HENDRICKSON seems oblivious that Famspear controls the bulk of his logins) to throw a fit; he replied with a cut 'n paste of the entire forum rules.

[ag maniac]

On another forum someone asked about taxation on income derived from property - passive income. I responded with a real world example; a bitcoin investment in LabRatMining. Specifically I bought bonds at about .1 BTC each which pay weekly dividends (since August '13 it has paid a total of .022 BTC per bond). Recently I posted how well things were going with this "tax-free investment!" Well... that was enough to cause one of the resident quatlosers in disguise there .... to throw a fit; he replied with a cut 'n paste of the entire forum rules.

I'll bet you liked to tease the girls on the playground back in the day, JohnnyCash

[JohnnyCash]

Perfectly logical to me why a certain sociopath would not appreciate me sharing this information - a demonstration on how to avoid federal tax on income derived from property (passive income). In this example it was done via bitcoin, but it can be done just as easily with lawful money.

[Freed Gerdes]

I am making a little money trading stocks in an online account, which is conducted in lawful money. Last year I told the IRS that these transactions are outside the purview of Title 26 USC, and thus are not 'taxable income' and consequently will not be reported by me in the future. Not a peep from the IRS...

Freed

[Chex]

conducted in lawful money, transactions are outside the purview of Title 26 USC, and thus are not 'taxable income' ...Freed

Before being in the purview of Title 26 USC came about, what happened when you paid usage on those transactions? How did you get not 'taxable income' redeemed?

[Freed Gerdes]

Prior to filing my demand for lawful money with the County Registrar of Deeds, I just paid the capital gains taxes on those transactions. Since the filing, I do not report the transactions at all.

Freed

[JohnnyCash]

LRM dividends were .00036 BTC per bond this week. About 19% annualized gain - totally outside the banksters' system.

[Chex]

I just paid the capital gains taxes on those transactions.

Something is not sitting right with me here with investments transactions in LM.

The big issue is whether there is capital gains tax on the transfer. You will need to do the sums to decide whether the cost of transferring (legal and stamp duty) plus possible CGT outweigh what you might get back in the age pension.

Read more: http://www.smh.com.au/money/ask-an-e...#ixzz2uttUHN94

[Freed Gerdes]

The transfers in question involve E*Trade purchasing various stocks for me with lawful money held in a related account at E*Trade's internal bank division, and then later selling those stocks and depositing the lawful money back into that related account. I served my demand for lawful money (now, ab initio, and nunc pro tunc) on the bank. This demand rebuts the presumption that I want to gift these assets to the public trust. Thus they are privately held (cash only account), and any transactions conducted in lawful money are not taxable under current Internal Revenue Code. Since such transactions are not taxable income regardless of their source, I do not report them.

Freed