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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>
>
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