What if you have bitcoins because you ACTUALLY sold drugs for it? What do I tell the taxman?

What if you have bitcoins because you ACTUALLY sold drugs for it? What do I tell the taxman?

Asking for a friend.

Make some BS up like that your friend from another country owed you money and wanted BTC to become more popular and stuff so he sent you some instead of paypaling it to you lmao idk

In the USA it is unironically possible to file your drug earnings.

Supposedly they don't report it to law enforcement.

It is a strategy to at least get some money back from illegal activities.

Remember al capone was convicted for tax fraud not his crimes.

open up an online business that accepts BTC and slowly cash out?

Use your fucking brain, washing money is easy unless you are dealing with huge amounts of money.

Just say you bought them and use the date that you got them as your purchase date

You launder the fucking money, don't be a pleb.

>you are dealing with huge amounts of money.
y-yeah I totally don't

So, not for bitcoin but ive been wondering this too.. if im a 20yr old college student who wants to buy a tesla pretty soon and the vast majority of that money's origin will be unexplained... should i actually maybe pay some taxs to be safe? got about half in crypto rn and half in drugs, and the money in crypto originally came from drugs sooo

How will the tax man ever fucking find out? Come on people wise up

>paying taxes on crypto

Just buy shit with BTC man, don't convert to fiat or use localbitcoins like other money launderers.

are you retarded? A. who is he going to be speaking to directly that he would explain that to, and B. the whole point of a blockchain is so you can quickly look and see wether or not that tory is true...

Maybe this, open up a BTC faucet site and get money from ads and then use that to cash out slowly and say you earned money from online ads? Seems like a good idea to cover your tracks.

Just say u mined them u dumb shit.

Fag, don’t declare. Find ways to trade btc for tangible goods

sure thing cause addresses got names associated ikr?

Just do your time, OP. Be a man and get buttraped for being AnCap.

Doesn't gifting or exchanging them for things still count as selling for tax purposes?

Jesus Christ. Just say your got them from a friend who invested in crypto way back when.

It's the taxman, not a confession booth.

>Just buy shit with BTC man
Good luck buying anything over $10000 like a house or an apartment.

>don’t report crypto
>coinbase reports for you

Now wut?

that's what Al Capone thought

I mean, they're not going to ask "where did you get the money to buy the Bitcoins in the first place" as long as you're paying taxes on your shit

If it's $10,000 of BTC that became $100,000 or whatever, it's not impossible that OP saved up $10,000 from income here and there since income below the reporting limit doesn't have to be declared

>he still holds US citizenship

Veeky Forums - Drugs & Laundering

say you lost your private key, problem solved

>Withdraw $20000 of profit from your business account
>Say you lost it
>It's now tax-free lmao
Genius tax evasion technique

...

Tell them your grandma bought them for you.