How to avoid IRS tax your Bitcoin profits?

Up until yesterday, I was not aware of the fact, that we Slovenians are actually among few lucky nations, where Bitcoin profits are not capital gain taxed neither considered as part of the income for individuals. How come? Because unlike in US, where Bitcoin and all other virtual and crypto currencies are treated as property, in Slovenia Bitcoin is treated as foreign currency.

On the list of tax haven Bitcoin countries in time of writing this article you can officially find also Germany (Bitcoin is not considered as stock, commodity or any kind of currency, free up to &eur;600 or for sales after 1 year), Denmark (Bitcoin trades are totally tax exempted) and Singapore (Bitcoin is neither a currency neither commodity, tax free for long-term investors). Unofficially there are some other countries, where Bitcoin profits are probably not taxed, because capital gain taxes do not exist in these countries at all: Switzerland, Hong Kong, New Zealand, and others.

If you live in a country not listed above, you will probably have to pay taxes on realized profits when trading Bitcoins. According to exponential growth of Bitcoin price in recent months, it could be quite a figure. So, did you get an idea about how to avoid taxation by investing in BTC from one of the countries with 0% tax on Bitcoin?