ITT: We talk about different ways to cash out your crypto gains, taxation and regulations

en.wikipedia.org/wiki/Common_Reporting_Standard

>foreign bank account as US citizen
>hiding from IRS

You can cash out smallish amounts by buying gold. It's not a bad idea to have 5% investment into precious metals in case SHTF

This is what's making me a little nervous about diving deeper in to coining. Sounds like a lottttttt of fucking work, and if you miss shit you could get into serious trouble

My tax guy said i would pay 15% in federal taxes and my state is pretty decent about taxes so I am not worried there. I am new to crypto and its unlikely that I will do anything with my gains for a year.. .so I am pretty sure that makes it capital gains which isnt bad. I probably not going to keep track of every trade I make. I plan on keeping track of how much USD I put into it and what the overall value is of my crypto. I honestly wouldn't even know where to begin keeping track of the rest. Bitcoin is typically what i trade in I figure I would have to keep track of the USD value of bitcoin and the USD value of whatever alt I had it in upon entering and exiting the trade. I wouldn't even know how to do the math on that. Crypto is so complicated and shifty I don't think the IRS can reasonably expect better records than the USD I put in and the USD I take out.

I'm just going to not report it untill they start saying something i need as much capital as i can get to re invest. Im sure ill have cash on hand to pay when needed

When shit hits the fan the only precious metal that will help you is Masamune steel folded 10,000 times.

You would take your transaction history and if you were trading in BTC and not USD then you would look up the historic value for BTC at the time of the trade. It's a lot of work if you have been actively trading. But it's better than CID investigating you for felonious tax fraud.

>open an account to offshore bank
>establish an investment company to a tax haven like Gibraltar etc
>use bank account for the company
>keep calm and invest in crypto trough your business
>????
>profit!!!!

HOW exactyl would one cash out?

Let's say you have ALTcoins worth 100k or 1 million $ in a Desktop Wallet.
HOW are you gonna turn that into fiat?

Move the funds to an exchange.
Get verified to cashout >100k$
Turn that altcoin into BTC
Sell the BTC to an BTC Broker

The Broker and the Exchange both need your personal information and will likely give it to the goverment if they need it (tax evation and such stuff).

Did someone already cash out altcoins to fiat?
I had a lot of thoughts regarding this topic today and will probalby need a good answer in the future.

Can't you just pay the cap gains rate on the money you've earned since your original investment?

>transfer altcoins to bitcoins
>sign up on localbitcoins
>meet up with people and sell bitcoins for cash

>still deals with transferring to fiat

the issue is, you cant't convert altcoins worth 100k+$ into BTC that easy without giving out all your personal information.

Polo has a daily limit of 2k$ if you aren't verified. One needs 50 days to cash out 100k.

With that amount? Perhaps better question would be "How to own real estate without government knowing about it".

why cash out, in 5 years this will be worth 10x more if not more then that, you dont cash out, you just hodl and deal with cashing out later on in life when youre rich

I guess the problem there is timing.

Imagine you pay 20% CGT. You started on £100 and that is now worth £100k - but you've reinvested that money into another coin, not fiat. The tax year comes to an end and you've made £89k profit (minus your allowances) which means you now owe £17.8k in tax...but your money is all tied up in another coin.

there's tons of new bitcoin/altcoin stores popping up around the internet. i wonder if any of those could be used for laundering out at some point.

$2k/day is just fine with me

if the US finds out about you then you will get extradited

>Move to massive city temporarily if you don't already live in one
>sell on local bitcoin for less than market rate
>take car and offer to travel to people

I'd imagine that in a large city you could get rid of a few grand a day this way and you'll have it all in cash

Ecuador

There's tons of countries that don't have extradition treaties with the U.S

There's also plenty of way to cash out and dodge tax but if you can't figure out how to you don't deserve to know.

Is there anything wrong with just reporting the profits that go back into my bank account on my gross income? As long as Uncle Sam gets his share he shouldn't care where the money is from right?

You'll have to report all intra trade profits, including profits not yet exchanged for fiat if they're involved in current trades

buy gold with btc

>I probably not going to keep track of every trade I make. I plan on keeping track of how much USD I put into it and what the overall value is of my crypto.
your tax guy is going to fucking hate you

you'd be paying MORE taxes by about double

Fuck me, we have to record every littld up and down trade? I thought it was only when you cash out that you calculate the taxes between the money that went in vs the money that comes out.

Why would they want to make this shit so complicated?

>canada
>use bitcoin atm and eat 5% fee and slowly cash out

5% is shit, but way less than capital gains tax, using local bitcoins might get u killed

cuz the government is retarded

you could cash it all out and pay a % on your total profit, it's just not optimal... I think?

what about an anti tax. for example you lost 2k in coins. They wont pay you back 20% of that but expect you to fork over 20% on your gains....... this is next level cuckery.

if coin to coin trades qualified for like kind exchanges this would be the case, however that would likely never be accepted by the IRS for normal trading behavior.