Best non-taxable way to cash in your BTC? - page 2.

Mike Christ

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Quote from: Tirapon on October 25, 2013, 03:38:07 PM

Does anyone know about tax issues with regards to spending coins? I mean, if we get to the point where cashing out is unnecessary, and you can simply spend your coins on whatever you want, how would this be treated?

If you believe taxation is just, you, and the businesses you purchase from, will show complete honesty when filing your yearly taxes.

If you do not, then you have no need to ask Tongue

Tirapon

hero member

Activity: 898

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Does anyone know about tax issues with regards to spending coins? I mean, if we get to the point where cashing out is unnecessary, and you can simply spend your coins on whatever you want, how would this be treated?

nobbynobbynoob

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Activity: 784

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Annuit cœptis humanae libertas

By the time they're worth that much, you might not need to cash them out.

If the tax you legally have to pay is not that onerous, it may be best just to pay the Don his "dues". Otherwise, as others have posited, leaving the US is an option (and ignoring Uncle Sam's citizenship-based tax claims, which will work as long as you never set foot in the US again).

Timo Y

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bitcoin - the aerogel of money

Get a mortgage and pay it off slowly with your Bitcoins.

Spekulatius

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Just move over here and keep your coins for 1 year before cashing out tax free Grin

http://www.coindesk.com/german-government-relieves-capital-gains-tax-on-bitcoin-positions/

BittBurger

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Quote from: msc on October 24, 2013, 10:42:46 PM

Quote from: BittBurger on October 24, 2013, 09:13:08 PM

I would sooner withdraw my bitcoin to an account overseas than I would pay capital gains on something the government doesn't even recognize as currency.

It's still taxable as long as you live in the US, just harder for IRS to find out about it. And since you're cashing out, it's the USD gain that's being taxed.

I won't argue, it's just my 0.0001.

I know. Im aware of the traditional rules. And the way they work. Everyone is. The point of this thread was to discuss alternatives.

msc

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Quote from: BittBurger on October 24, 2013, 09:13:08 PM

I would sooner withdraw my bitcoin to an account overseas than I would pay capital gains on something the government doesn't even recognize as currency.

It's still taxable as long as you live in the US, just harder for IRS to find out about it. And since you're cashing out, it's the USD gain that's being taxed.

I won't argue, it's just my 0.0001.

seafarer124

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Activity: 302

Merit: 250

Quote from: BittBurger on October 24, 2013, 09:13:08 PM

Quote from: msc on October 24, 2013, 04:59:49 PM

Pay your capital gains tax, and sleep well knowing that you won't go to jail. And be glad it's just capital gains, and not self-employment income.

Thats funny! I have self employment tax that I have to pay as well

On top of my taxes for my business income. Punishment for being an entrepreneur and small business owner in the USA.

Thanks Uncle Sam! Glad I could help your economy, by using my brain and talents to create value for this country. Dick.

PS: I am not paying capital gains on Bitcoin. The entire point of Bitcoin is that its my money. I know I'll get flamed for this but ... im presenting a debate here.

Your solution to bitcoin income is to comply with banks and regulations? Thats strange to me ....

I would sooner withdraw my bitcoin to an account overseas than I would pay capital gains on something the government doesn't even recognize as currency.

As far as they know, this is a gift, given to me by the internet. Nothing more.

Is there any way a percentage, say 80/20, of a payment could go to two BTC addresses?

One would be private the other business.

I think it would be called creative accounting.

BittBurger

hero member

Activity: 924

Merit: 1001

Quote from: msc on October 24, 2013, 04:59:49 PM

Pay your capital gains tax, and sleep well knowing that you won't go to jail. And be glad it's just capital gains, and not self-employment income.

Thats funny! I have self employment tax that I have to pay as well

On top of my taxes for my business income. Punishment for being an entrepreneur and small business owner in the USA.

Thanks Uncle Sam! Glad I could help your economy, by using my brain and talents to create value for this country. Dick.

PS: I am not paying capital gains on Bitcoin. The entire point of Bitcoin is that its my money. I know I'll get flamed for this but ... im presenting a debate here.

Your solution to bitcoin income is to comply with banks and regulations? Thats strange to me ....

I would sooner withdraw my bitcoin to an account overseas than I would pay capital gains on something the government doesn't even recognize as currency.

As far as they know, this is a gift, given to me by the internet. Nothing more.

msc

sr. member

Activity: 284

Merit: 250

Pay your capital gains tax, and sleep well knowing that you won't go to jail. And be glad it's just capital gains, and not self-employment income.

justusranvier

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Activity: 1400

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The best way to financially benefit from your bitcoins is to:

1) Leave the US with your bitcoins.
2) Live in some other country that has less onerous taxation.
3) Enjoy a lower cost of living and absence of an oppressive police state.

Mike Christ

legendary

Activity: 1078

Merit: 1003

Quote from: adamstgBit on October 24, 2013, 12:35:00 PM

their simply no way to enjoy 1,000,000$ of tax free money unless you're already a million and +1million won't raise any questions.

i dont care if you cash out on local markets, if you start to live well beyond your means IRS will investigate and TAX you.

Yes; the best way to cash out a million dollars is over the course of a lifetime.

adamstgBit

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Activity: 1904

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Trusted Bitcoiner

their simply no way to enjoy 1,000,000$ of tax free money unless you're already a million and +1million won't raise any questions.

i dont care if you cash out on local markets, if you start to live well beyond your means IRS will investigate and TAX you.

BittBurger

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Im sure this has been discussed many times. Apologies if so.

A friend of mine and I were discussing what we would do if BTC ever did hit $1,000 and we made a million off the investment. Or more.

As it stands right now, nobody in the regulatory world on planet earth knows I have Bitcoin. As far as they know, $XXXX was withdrawn from my bank account 6 months ago.

End of paper trail.

If that $XXXX turns into $X,XXX,XXX in five years... whats the best way to convert it back to USD and enjoy it?

My friend suggested buying Gold on the site which sells Gold for BTC.

Then once you have that physical item in hand, you can sell the gold for cash in hand. Then I guess you need to keep the cash under your mattress?

What methods are there for enjoying a profit without having to get anally raped by the greed institutions?

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