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> IANAL, I'm not a tax expert, but I believe you can deduct losses when converting to/from fiat currency (US dollars). Which is where taxation would take effect.

You are flat out wrong. You are taxed on any income or transaction, no matter the currency used.

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IIRC, you don't pay capital gains/taxes while sitting on one share of stock that you haven't exchanged yet.

When you trade it, that's when you get taxed.

That's when you buy it. I'm not an accountant, but AFAIK if someone gave you stock for performing a service you would pay taxes on it at that point in time. Then if you sold it you would pay taxes on the difference in value.

I think the key might be that the IRS is viewing bitcoin as a payment for the service of mining.

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