How do I cash out crypto without getting raped by fees and the IRS?

>So if I hit say $100k & decide I want to cash out, should I just move 2k a month or so to my bank account? Or would this become very obvious and land me in federal pound-me-in-the-ass prison?
Taxes are taxes user. That's perfectly legal.

at 2k a month the bank probably won't file any suspicious transaction reports, but it would take forever, and a clever bank employee still may spot it and report the transactions as suspicious. it's a gamble.

Wrong.

Taxable income is treated the same taken at once or 2k at a time. When he does his taxes his taxable income is the same whether he took out his 24k 2k at a time each month or 24k all in one month.

Just wait until society is an ancap utopia that runs on crypto currency and smart contracts then buy your lamborghini airship.

I meant more as an attempt to avoid taxes. Which is not perfectly legal, sadly enough.

I was under the assumption he was not going to pay taxes and was trying to structure the deposits to avoid suspicion, that's where my advice came from. I would never try it though. I work for a bank. you can't fool us.

what's the penalty for not reporting that stuff?

kek.

what's the penalty for not paying your taxes?

wage garnishment, jail, you name it. depends on how deep of shit you get into.

First off, this^

Second off, you just pay taxes. You think any of this would be happening without the tax man maintaining a wealthy country? You cuckservatives make me sick

>But muh sovereign citizen
>But muh tea party

Leave the country or pay taxes fagboi

bubba gets to have his way with you in the shower

>How do I cash out crypto without getting raped by fees and the IRS?
Don't sell at exchange.
Sell against cash and meet in person.
Obviously, there are risks involved but imho better than paying XX% in tax.

I personally just decided to stay in the market until I don't have to cash out anymore and can pay everything in crypto. Would literally have to give ~55% of my crypto gains to the commie tax man in my country.
Fuck that shit.
Wouldn't have said anything if tax were like 5-15%.

hard to rob to thieves, but not impossible.

>giving up 55% of your crypto gains in taxes
That's just ridiculous. I always thought "taxation is theft" was a joke, but ever since I started browsing Veeky Forums I realize how hard the government fucks us over.

>Leave the country or pay taxes fagboi

Fuck off you loser gov-cuck

I had a question about this as well. I live in California where capital gains are taxed as regular income. Of course I don't want to give any of those bloodsuckers any of my hard earned gainz. If any of my crypto ever goes to the moon and I want to cash out, my plan is to move out of California to a state with no state capital gains tax. I believe Florida is such a state, but I'm not sure. And also, I believe you have to live in the other state for an entire year, because otherwise partial year's income would need to be paid to California. Does anyone know more about state's treatment of capital gains & partial year returns?

Just trying to plan ahead here.

Hold until a good crypto debit card comes out or we can pay for things directly in it. Some cards are already out but the fees are too high.

I've read they've started cracking down on that. I've read stories about people being busted in sting operations for selling BTC without the proper financial services licensing. These government thieves are relentless in their pursuit of getting their hands their cut

No capital gains tax in NZ, feels good being free.

this method takes a bit of work but its basically 0% fees

>put all coins into btc
>use btc to buy guns on the deepweb
>use guns to rob bank

bank robberies aren't taxed + no fees
if you want you can sell the guns also

bruh.

Remember kids, whenever you make money, Uncle Sam comes to take their share. With fucking M16s.

Sup Commiefornia bro. I was just reading up on capital gains tax in our fucked up state. Turns out we have the second highest cap gains tax in the fucking WORLD, and somehow our state is still broke. Fucking useless democrat cunts.

gracias para su deniro, gringo

this is why I plan to move to another state if I ever decide I have enough that it's worth cashing out. I don't want to get in trouble and not pay taxes, but of course i want to give those parasites as little as I can, especially to California where the money will just be used to give to illegal immigrants. Fuck California, I'm out of here as soon as I have enough.

but I know that when you live in a state for a partial year, you have to pay a partial year's taxes to that state. I don't know if that includes capital gains. What I might do is move in December and then cash out in January.

ik
you can thank me when you're part of the lambo club

different question: how do i actually pay taxes? i have a lot of transactions to report. like what form would i fill out and shit

>be friend
>avoided taxes by keeping in swiss bank account
>not much, low 6 figures
>IRS spent over 5 million dollars investigating my case
>now I'm felon, cant get job, depressed, low 6 figures in debt, will probably die soon from stress
> :(

neet revolution when

What if I'm not in america but im using a us bank account?

schedule d

you have to report the cost basis and proceeds of each transaction. then you pay a 15% tax on gains. You can also subtract losses from your income (though I don't know if that applies to coins)

If you only sell a little bit each year the IRS probably won't target you, but if you cash out $100,000 and then don't declare that as capital gains, you might get targeted.

What do you pay if all your btc was "hacked"

I don't live in the us anymore howver the bank account i still use is in florida, if i wanna cash out how would taxes rape me?

i don't think that'd be a capital loss since you didn't sell anything. Probably a theft loss, which you can take as an itemized deduction.

can't answer, but I imagine if you're a resident of california then you have to pay california taxes.

If you choose to do it by the books. I think its treated as property, so the max amount of taxes you would have to pay would be around 2% depending on what state you live in

Florida fag

fuck i'll just report it as income

they'll get their money and if they get pissy i'll just plead ignorance about how to file it

well I'm not sure that works. Of course if you haven't lived in California at all during that tax year, you wouldn't pay California taxes. But if you lived part of the year you pay a proportional tax. but only on income "earned" in California, iirc. i don't know if that includes capital gains. Point is I don't want Jerry Brown getting any of it so he can just squander it on bullet trains and free health care for illegals, so I'm definitely getting the hell up out of here before I sell.

report it as capital gains. Form schedule D. It's not hard. You can subtract the cost basis from the sale price, so you only pay tax on the proceeds

Where's that wall we were promised TRUMP REEEEEEEEEEEEEEEEEEEE

Are you US citizen? Then your world wide income is taxable in the US.

But desu. taxes are theft.

Ultimately we will all be cucked by the IRS. They are suing coinbase for all their customer's info so they can fucking audit everyone. Their next step is probably to go after the exchanges.

I'm not a citizen lel, i sprnt 5 years there, got my social security, and i left just two months ago for Spain.
Not sure how this affects my taxes but i have two coin base accounts one in murica and one in the eu

Good luck bro. Hope it works out for you. Wish I could leave this piece of shit state but I'm kind of stuck here.

we'll see. if bitcoins ever hit $10k or any of my memecoins pay off, i'll have enough for my dream. hodln until that day

Each transaction? Does that include every time I exchange between coins or just to/from my bank?

just when you sell bitcoins (ie exchange them for dollars). You report the sale price, and the cost of the coins (what you originally paid for them), and subtract the cost from the sale price, and that's what you're taxed on.

What's the most stable coin to leave it in if we're cashing out slowly?

Ethereum?

How do you pay for *everything* in crypto?

Fucking this.

I can't answer that. What makes you think ethereum is stable? I think all coins are going to continue to see big fluctuations. I'd probably go for the one with the best record of continue appreciation, and that's bitcoin

If I buy 1btc and it doubles and I cash out half of it, would I pay tax?

Then you should do your taxes in Spain. Which means you're fucked because the spanish tax system is a bureaucratic medieval hellhole. xD

Just make sure you have your private info in your us banking account changed to your new address. The murricans could get suspicious otherwise and you could have a bad surprise the next time you're visiting burgerland. (They could open an investigation and border guards could put you in a holding cell till everything clears up).

Statism is disgusting.

So if i transfer my funds from bittrex to coinbase and there i withdraw it onto my us bank account id have to pay spanish tax even if the money is in $?

Capital Gains Tax dumb American dog

Yes, theoretically you need to pay taxes on the profits. (Or the transaction itself, depending on how retarded your government is).

Feels good, eh? Being robbed by people who have nothing to do with your coin gains. Simply because "muh social contract" you never signed you have to give them a part of your property or else they throw you in jail.

Taxation is theft.

actually, here's some good info on this subject

irs.gov/pub/irs-drop/n-14-21.pdf

>Q-6: Does a taxpayer have gain or loss upon an exchange of virtual currency for
other property?
>A-6: Yes. If the fair market value of property received in exchange for virtual currency
exceeds the taxpayer’s adjusted basis of the virtual currency, the taxpayer has taxable
gain.

so, no you don't have to report exchange to other coins because the value at the time of the exchange have the same value at the time.

Yes. Tax residency. Wherever you are living there you need to pay taxes. (Well, except if you're US citizen. Then you need to pay taxes wherever you live AND additionally in the US).

If it's significant money we're talking about it would be wise to read up on the topic. State thugs don't like it when you "steal" from them (keep your property).

And because we're living in 1984 every fucking banking transaction is monitored so there's no sense in elaborate shuffling of money between bank accounts.

And exchanges are little cucks to the tax authorities and keep extensive records.

So if you have 1 million Euros in BTC you probably should pay tax unless you want to end up in a cage. (Or better: Get to some offshore tax haven and cash out there).

Not necessary. IIRC the US IRS doesn't treat coins as "capital" and burgers have a harder time with taxing their coins. AFAIK they need to pay taxes on every transaction (because for the IRS it's like buying/selling a car and not investing).

But I'm an Eurofag and a burger with some knowledge should clear this up.

I don't think so, because that's not a capital gain, in USD right?

This is a relief. For some reason I was thinking i'd have to figure out each little transaction I make on Bittrex.

So really I can do the following (simplified?)

1. Buy Cyto on Coinbase
2. Sent to Bittrex
3. Makes lots of trades on Bittrex
3. Send to Coinbase
4. Cash out to bank in USD
5. Subtract the USD value I bought coins with initially final USD value that goes back in my bank
6. Use that value for capital gains on Sec. 4

Right?

>You think any of this would be happening without the tax man maintaining a wealthy country?
Yes, and it would be better. IIRC the US tax revenue is at 35% GDP. Just imagine if everyone had 35% more money. The economy would boom and without idiotic regulations we would be pumping and dumping real stocks here and not shitty random numbers without any fundamentals.

Fuck the state. It makes everything worse.

you got it

Oh okay, it's definitely CGT in my country which comes under Income Tax but they do say you need to keep records so it's possible I'm missing something in my country too.
Alri Stefan

Most of my gauns are in us currency, but how do i go about cashing out in a heaven? I can transfer the funds from the us account to the eu account no problem tho

>This is a relief.
Actually you need to pay income tax on barter. No one does though and the IRS doesn't enforce it. But if they wanted they could fuck you with that.

So bartering your BTC for XRP would mean you need to pay some amount of that as income tax. But I have no fucking idea how they would calculate the amount owed.

irs.gov/taxtopics/tc420.html

They put their claws into fucking everything.

Hate to burst your bubble dude, but I'm pretty sure each transaction is taxable, even between cryptos. I just talked to a CPA about this and that's what I was told.

>So bartering your BTC for XRP would mean you need to pay some amount of that as income tax. But I have no fucking idea how they would calculate the amount owed.

No it wouldn't because they'd have the same value at the time. Therefore there's no loss or gain.

>Q-6: Does a taxpayer have gain or loss upon an exchange of virtual currency for other property?
>A-6: Yes. If the fair market value of property received in exchange for virtual currency exceeds the taxpayer’s adjusted basis of the virtual currency, the taxpayer has taxable
gain.

feels fucking goon nzbro

It counts where you reside when you make the gains. Gains in BTC itself usually aren't taxable (check your local tax code) unless you convert those to a fiat currency.

So what you would do is:

1. Get to an offshore haven (or any country with an acceptable tax rate - i.e. not western europe)
2. Live there for 6 months + 1 day
3. Convert your BTC to USD (or whatever)
4. Transfer it to your bank account

Neither the currency, nor your citizenship*, nor where your banking account is located has any influence on where you pay taxes. The only thing that counts is where you live.

You could also create an offshore company and somehow transfer the bitcoins to them (needs to be believable - just gifting $1 million in BTC to some company won't fly with your local tax authorities). And cash out via the company. But that's expensive (not too expensive but not worth the trouble < $100k) and complicated to get it water tight. Certainly a too complex topic for a Chinese tax evasion board.

* = burgers are fucked. their world income is always taxable in the US.

yes us burgers are always cucked by our government. How else will we pay for the next war with north korea to fatten the wallets of boeing/lockheed/blah blah?

Ah, good to know.

Ok i understand 90% of what you said just that the cashing out in a safe heaven, lets say im standing in safe heaven and my bank account is a Florida checking account, do i open a new bank account in the safe heaven or is it all about where im physically standing? ?

Hahaha thank fuck I'm not from the US
Our government knows about bitcoin but the population is barely aware, I'm making so much money next week I'm going to call my bank account executive to check if I'll have to pay taxes when I cash out.

I'm 21 years old. I have no fucking clue how taxes work. I'm planning on cashing out some of my ETH once I've got about 2 grand worth. Will that be taxable once I cash out?

Well I'm glad I've been doing this for less than a year so I can actually report my capital gains. Taking a 28% hit sucks but at least I won't be taking it in the ass by bubba in the shower every time I drop the soap.

it doesnt matter since your bank account in american the irs will come after you no matter where in the world you are

the different between the usd you bought your coin with and the amount you have now is.

What pisses me off the most is that I don't benefit at all from taxes. So what, I'm paying the policeman to pull me over? Firemen don't do shit, my house isn't going to catch on fire, statistically there's

Even if i withdraw 5 dollars, wait isnt there a way to send this as a gift ?

more info
irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031

>WASHINGTON — Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.

So, if you exchange one asset for the same kind of asset of the same value, then you can defer taxes on that exchange.

if you use your crypto to buy goods and services, then yes, you are essentially "selling" the crypto back into dollars at that time, so technically all crypto transactions have to be reported, though that's probably very tough to enforce. Big exchanges made through a place like Coinbase into USD will definitely have to be reported.

why not just move to a state like Wyoming or something where the tax rate is next to nothing, and then cash out as soon as you get there?

Generally all income is taxable. Most countries have tax free brackets though. Here in Germany for example it's ~8k/year. If you make less than that you don't need to pay any income taxes.

So look this shit up for your jurisdiction. Chances are that you're a 21 yo neet faggot without any other income so you probably won't have to pay a dime.

But look it up. Ask Google. I'm sure there are dozens of "crypto currency taxation " results to be found.

dont be a bootlicker

never pay taxes

rand 2024 will free us from this authoritarian hellhole

just assume everything is taxable

It's about where you reside. (Provided you are NOT an US citizen because for them there's other rules).

Most tax codes define tax residency as "at least living (6 months + 1 day)/year in the country".

So if you're a tax resident of a haven you can cash out everywhere. Your income would be taxable in the haven.

But I hope you know that legal tax residency in a tax haven is fucking expensive and is only worth it if we're talking about serious money and not just a few grand.

Of course you could gift it to someone. But that someone would need to pay gift tax on it. So either way you lose and the parasitic state wins.

Im not a us citizen tho, so i should hust cash out in the country with the lowest tax rate after living there for 6 months?

Can someone tell me how much the fee in canada is?

14k is the max taxless amount you can gift

Immigrants probably

or you just dont cash out through a jew bank