I cannot see how you got so screwed on taxes WRT gold. I have a CPA do my books and I didn't seem to have gotten hit nearly as hard. 2013 is going to be an interesting year due to my starting to take BTC profits.
The really interesting thing will happen if/when people start to exchange BTC for PM's (and vice-versa) directly in a major way.
b/c i report them?
as i said, my local bullion dealer meticulously recorded my entire gold/silver sale back to them by writing down my name, address, check amount, and photocopying my license. you'd have to be nuts not to report the gains.
I concur about the questionable judgement of not reporting, and I reported mine as well. I just didn't get hit with some 50% or whatever crazy numbers you were mentioning were. We got in at different times, however, and maybe that had something to do with it. I just let my CPA deal with that shit.
BTW, however stupid it might be to cheat on the PM gain taxes, I'll bet it is 10x more so to attempt to do so on BTC gains. The reason is that it will be one of the few vaguely legitimate reasons to attack Bitcoin should the government take a mind to do so. And as the ecosystem continues to flourish I think there is a very real danger that they'll be forced into that course of action.
When it comes to direct PM<->BTC transactions it seems like the barriers to exploitation both legally and mechanically is a bit higher. That is why I think it will be interesting to watch how things evolve if/when we get that far.
