If you put $10,000 into crypto, turn that into $20,000 (portfolio value), and cash out $10,000 to your bank account...

If you put $10,000 into crypto, turn that into $20,000 (portfolio value), and cash out $10,000 to your bank account, will you get taxed? All you would be doing is getting back the money you originally invested, no profit.

You must be a fucking moron if you think that is how taxes work.

Keep it under 10k

banks must report deposits over 10k to the government because of drug interdiction. At least in the United States.

You're a fucking idiot.

>cashing out

You are missing the point of crypto

For non-autists, yes. No one will care.

For autists, no, you have to report on every trade and every realized gain.

Yes you made 10K on a short term investment... 15% capital gains tax if US..

($10,000) + $10,000. You have no realized profits yet because you haven't figured in the deductions for your expenses. The last $10,000, when you are ready to tap out, is pure profit as there are no deductions that can apply, since they were already taken, unless you have other losses.

This is why you pay the $250 and rent a friendly neighborhood jew to handle your books.

only if you make over 38,000 and that's only if you take it out within a year.


TFW you fit into this tax bracket. =\

MFW I can move to puerto rico for 6 months and cash out TAX FREE

>cashing out

>The investor cannot have a tax home outside of Puerto Rico or ties to the US
>cash out for free after revoking citizenship
>stuck on a parasitic island with nothing to do but attend gay pride parades
Living the dream, faggot.

Crypto isn't at the point yet where it can be used to by a loaf of bread anywhere in the world, although it will get there somewhere down the line.

Also, just open up an offshore bank account somewhere and cash out into it, like every rich fucker does.

Don't you guys get a minimum tax threshold on capital gains?

In the UK we get the first £11k tax free (like $15k) and the tax bands start after that.

Yes. Taxman literally will never know.

I used to date someone who worked at a bank. These are called CTRs. They are federally obligated to do these for transactions above $10k, but certain banks (like Wells Fargo) DO NOT like and are instructed by upper management NOT to tell customers that they are doing them. There is another report called a Monetary Instrument Log (MIL) that will be filed if you try to convert cash totaling to or more than 3000 into a negotiable instrument such as a Cashier's Check or a Money Order.
BOTH OF THESE ARE SENT TO THE IRS TIED TO THE SSN THAT YOU HAVE ON FILE WITH YOUR ACCOUNT.

Act Wisely.

IF you try to take your cash to separate locations, this will not work.
EMPLOYEES WILL LOOK INTO YOUR PAST TRANSACTION HISTORY FOR MULTIPLE AND/OR LARGE CASH DEPOSITS (within a certain time frame or not) IN ORDER TO DETECT MONEY LAUNDERING.
THEY CAN AND WILL REPORT YOU FOR NOT ONLY AVOIDING TAXES, BUT ANOTHER SEPARATE REPORT TITLED SUSPICIOUS ACTIVITY REPORT (SAR) FILED AT THE DISCRETION OF THE CLERK AND/OR THEIR MANAGER. (They are legally obligated to not tell you they are filing this and will probably do so after you walk away.)
YOU WILL BE PROSECUTED AND/OR QUESTIONED USING THE INFORMATION THEY HAVE WITH YOUR ACCOUNT DATA/FILE.

So just pay your taxes. It is not worth it to be prosecuted by the Federal Mafia. Just be an honest person and they won't get you.

Cheers.

>first £11k tax free

Per year?

so put in / out amounts under 3k and it should be fine right?

You literally can't cash out...

Yeah, same goes for income tax so you get £11k free for both income and capital gains, that being said if you have no income your capital gains gets counted as your income instead but otherwise it's tax free.

Instead you just get taxed up the arse afterwards so if your cashing out huge amounts the UK isn't great but for pocket money it's pretty neat.

Not in Bulgaria. You're taxed 10% of [Money Withdrawn] - [Money put into crypto]
...
You're fucked in the states tho

Is that seperate to our income tax?

So I could make £11k of crypto and withdraw tax free independant of what my wages are or does it count towards my income?

Lol, no I'm saying to just pay the tax.

But generally ya, anything under 10k is not reported, so long as the bank doesn't think you're suspicious (i.e. 1400 dollar deposits every two weeks and then now a random 9k cash deposit).

If you are doing 9k cash every week, they will report you almost guaranteed if it's out of the ordinary. In other words they look at you and determine whether you got the cash legitimately. They might even ask you how you got it.

No it's not separate. If you gained 10k in wages then you would only be able to make 1k from other sources before getting taxed. You still need to file a tax report tho.

This really only happens if you don't have a decent job either.

Anyone who tries to evade the federal mafia’s theft is a hero an in no way a dishonest person.

Taxes are theft. Fuck the IRS. Fuck the federal government

depends, just use your crypto to buy gold and cars on craigslist or something and resell the car for cash. You can only use cash to pay for shit but who cares.

>so you get £11k free for both income and capital gains

Combined together? Or a total of 22k tax free?

You only have to live in Puerto Rico for 183 days a year. Just buy a nice house on the beach in the middle of nowhere for $300k and live there from November to May every year as you cash out, and take vacations for 5 months.

PR is going to be filled with crypto lords

That is how taxes work you mong.

damn, not to mention you can get stem cell treatments there.. it will be filled with 200 year old crypto lords

Essentially, ya, but it can happen even if you do have a decent job. It's just a sort of analysis that happens as you're doing a transaction. It's an assessment of one's income and the amount that they are depositing or withdrawing at the time.

It's looking for anything out of the ordinary. The computer system also will give alerts as to whether something is suspicious or out of the ordinary at all.

Bulgarian chicks are so fucking hot.