wow. So glad this discussion happened. I am an attorney - NOT a tax attorney. I am hoping to keep my investing as simple as possible in the short run. Having lived through an IRS audit - have absolutely no desire for another.
I've always wondered about this... we don't pay a tax on exchanging currency at the borders - why would be have to pay a tax on this? is it capital gains or ordinary income? Any tax lawyers out there who can provide some insight?