So what does the IRS ruling of bitcoin as property mean for buying goods on the darknet. If I bought $200 of bitcoin on coinbase through my bank account and send it to sr2 and spend it all, what do I do? Do I report it on my taxes? Will I be in legal trouble for not saying what happened to the coins?
For the love of Christ, please do not report to the IRS that you transferred $200 of bitcoins to SR2. They will laugh and laugh because even they know that SR2 is defunct.
On a serious note: no, you do not have to report your illegal activity to the IRS. Unless you are Al Capone, in which case you should have known better.