Topic: ASIC Owners (or anyone with lots of FPGA): Cashing out BTC (Read 3350 times)

OP, Before you go off not paying taxes and stuff, speak to an attorney.  They are the only ones qualified to give you tax advice and not strangers on the interwebs. 

So here's the thing - you're going to have to use verified accounts at some point, and it's going to cost you some tax at some point.

Personally I'm verified at mtgox and cavirtex.

Whenever I get into the 8000 a month range just use the other. Depending on your immigration status, various laws affect you.

I do not, for example have to report income earned in another country while I'm a US resident. So I use the cavirtex first and wire into a royal bank account. Anything that goes into my US accounts I have to pay income tax on.

A couple ideas that help -

cultivate local buyers, some locals coming to you with cash to buy btc so they can go buy whatever it is on silkroad. Legally you'd still have to pay taxes on cash sales... but hey what you evade is your own business.

Buy some other store of value for btc - gold and/or silver come to mind, sure you'll get completely hosed on the markup but it's pretty much anon.


Eventually, if you can sustain your income level, you're going to have to incorporate yourself as a business - deduct hardware, maintenance, electricity & network services, pay yourself a wage you can handle paying income tax on... and let the business own all the hardware. You can 'cost of doing business' almost anything in this scenario including your own healthcare, insurance etc... and it's easy enough to grow it as your income increases... simply add some additional employees - who's job it is to have additional exchange accounts... etc. This amounts to going completely legit - and how much profit taking you can do is entirely dependent on you paying the associated tax costs and wages and whatnot (according to your local law).

The massive plus here, is that you'll have complete control over how much your business actually makes - and you always have the option of simply accumulating bitcoin that you don't cash out.

10X dude
Makes sense good luck to you!

I cashed out gradually.  One third at $71.  One third at $142.  And the rest at $236.  I cashed out because I thought the dollars were more valuable than the bitcoins.   The second sale finally made my business profitable (after two years).  The third sale is essentially a gift.  I'm using it to pay off my daughter's student loans.

I'm old and have several times in the past held assets past there bubble burst and ended up with a 90% loss.  I'm happy to have not done that again.

I would have sold much sooner than $236 but the price was going up too fast.  I have a real life and could not be watching my coins all the time.

Dude,
IJust a side question.
Why did you cached allof them?
Are you in panic or?
You do not have to answer me of course. I am just tring to figure out why so many folks get obssed and are caching out no matter of the price?

This thread belongs in Bitcoin Discussion - Legal.

I pay a 28% tax on income.  I'm in the United States.  I file a schedule C which is where you report self employment income.  I also report there my expenses.  When I subtract my expenses from my income I pay 28% on what is left over.  The other 72% I keep.

This hasn't happened yet.  I had a loss in 2011 and 2012.  I will have a gain in 2013 and have to write the IRS a check next April.

How much do you pay in taxes? Also, if the money you mineis going to the business, how do you get to spend it on yourself?

I just cashed out all my bitcoins.  I live in the United States and I'm going to pay taxes on them.  This is way easier than trying to hide the income.  I've been doing this for 2 years and paid taxes both years.  Because I run this as a business I get to deduct all my expenses.  So the tax hit is not as high as my personal tax rate.

I have relatives in jail and have seen how defending your self against prosecution can be very expensive.  Paying your taxes will probably give you the highest return.

I remember an inspirational speaker who said once: (or a few times)

Speaker: You have to feed the goose.
Audience: But the goose is too fat.
Speaker: Better a fat goose, than no goose at all.

You pay taxes so the government can do the things through it's agents that you are not willing to do, such as render military service to keep the rest of the country safe. You can just go make money.

Of course, if you are making a boat load of money, you better take steps to secure yourself as well, (bodyguards, weapons, food, etc.)

When you're rich enough, you can buy your own country (or as the speaker likes to say, get your own planet and you can rearrange the seasons as you want). But until then, you live by the rules of where you are.

There is a name for someone who makes a boatload of money and doesn't pay their taxes: An idiot.

Seriously— you're making a fortune! congrats! be happy!  ... so you have to pay a bunch of taxes? Who cares! you're making a triple bunch. Pay your taxes like a man, and avoid the risk of severe consequences down the road that shit all over your life.

Tor2Web just shows the content of the onion site. Which means it's the onion site that looks sketchy, but it seems to me to be pretty close to bitcoin-OTC or whatever it's called. The only difference is the onion site offers a built in escrow feature. Personally, if I were workin on getting cash out, I wouldn't be against doin a couple hundred dollars. As long as it worked, I'd put a couple hundred back in. You obviously couldn't get all your BTC cashed out in this manner, but it'd offer a chunk as long as it still worked.

Sell your bitcoins cheaper, I'll buy it from you.

Oh, your problem was how to NOT get noticed... don't deposit it into any bank. Store it in your vault at home. Or under the mattress. But sell the coins to me first, so I can give you unmarked cold cash.

That tor2web site looks so shady... Has anyone actually done work with them yet?

This site = https://36rt4evqyuwovhgl.tor2web.org/
allows you to trade BTC for cash in the mail.

lol...this is true, but unfortunately I have nothing to worry about. Come to my house, I have a few 7970 video cards and thats it, nothing worth trying to take from me

You can transfer up to $10,000 per month via bank wire anonymously at MtGox.

I'd rather not go that route if I understand what you're getting to. As far as I know, I'll have to pay taxes on a Bitcoin income. I haven't looked into this much yet, but I keep track of every transaction. My concern is making sure I'm not inviting trouble for myself from incorrect filings. I found out about the FBAR law last year, after becoming a signing authority for my mother who lives in another country. I've had enough headaches with that.

You might also check this dude

https://bitcointalksearch.org/topic/--172356

One sure-fire way not to go unnoticed is to ask a question like that in a public forum with a username that is extremely easy to link to real life information such as name and adress.