Topic: Give Away Bitcoin To Avoid Estate Tax - page 2. (Read 324 times)

Honestly that would be a dream come true for us

But if you think about it, why is it that tax evasion
(or any crime for that matter) is easier for
those with money. While those with not much salary
are forced to pay taxes with nothing to do but pay taxes.

The world is truly unfair

The country would obviously be better since people would have more money to spend on the things they need and want.

What's the essence of having a charger when you don't even have a phone to use it on.
Government are corrupt,  misuse tax payers money but the concept was introduced to finance the nation.
If everybody evade Tax what do you think would be of the country?

What is this estate tax you are talking about? Is this a tax that will be imposed in the USA in 2025? Is Satoshi Nakamoto an American? What if he isn't American and doesn't have US citizenship? Do you think that Satoshi Nakamoto's Bitcoins are under US jurisdiction?
Giving away 17K worth of BTC to 4 million addresses seems like a really dumb idea. The rich people in the USA are creating charity foundations and putting their financial assets there, because charity foundations have some tax benefits. Maybe Satoshi Nakamoto should do the same thing, if he's an American and he's still alive. I don't believe that his BTC will ever be taxed, though.

Ummm, it is legal to "gift" up to $17,000 per year, every year, to as many people as one likes, without limit. It is not "wrong" and it is certainly not "tax evasion."

Several commentators here need to learn the tax code better. Millions of families use the $17,000 gift exclusion every year. It is just that no one has tried to use it to randomly give $17,000 to millions of people. But it is perfectly legal. In fact, my wife and I have in our trust to give $17,000 (adjusted upwards by the IRS every year) to over 100 people upon our death, if the estate exclusion limit continues to be reduced.

And yes, I thought I was clear, but this would most likely happen AFTER passing, not while alive. The estate tax does not apply while alive. Finally, the rich routinely give money above the estate tax exclusion to charity to avoid estate tax. So what I am asking about simply replaces charity with gifts to random people.

So, now that this is clear (sheesh, it was not that hard), is there any way someone like Satoshi could set up such a plan? Or does the ledger and addresses and the way it is all set up make such an idea impossible? Thanks.

Taxation is theft, so tax evasion is not wrong. The economy would get better if everyone was able to evade taxes because then they would have more money to spend on the things they need and want.

It's a fallacy that you thinks the government would believe these 4 Million addresses are controlled by 4 Million people. If Satoshi sell his coins and he use bank account, it means the government will know how much the money that Satoshi have. It won't be a problem if Satoshi didn't buy lambo or luxury stuffs and choose to live below the income tax or capital gains tax, he don't have to split his coins to 4 Million addresses.

Received Bitcoin as a reward or giveaway is taxable.


Charity or non profit organization is non taxable, as long as they met all the requirements.

I think you are a person who doesn't have much money but has a lot ideas about what rich people would do.

So, let's say you bought Bitcoins 100 at $1 and now with your great idea to avoid paying taxes you donate them when they are worth $70,000. The tax authorities in your country will charge you capital gains tax for 6.999.900 (assuming a moderate rate of 20%, you would have to pay 1.399.980). And besides, you would have run out of Bitcoins, so I don't know what you were going to be able to pay with.


In your friend's example, if what he donated was money, capital gains tax does not apply because there is no capital gain, but with Bitcoin it does.

This is Tax evasion and it's wrong.
Taxes are supposed to  be used by the government to finance the country and if everybody start evading what do you think would happen to the economy of the country.
Besides this isn't really a smart method to evade tax.
The cost outweighs the benefit
Paying tax is way cheaper than this.
We should be thinking about how to improve the income generation itself rather than how to reduce necessary expenses.
Tax levied on Bitcoin held more than a year is lower than ones that are been traded.
So an holder would find paying the Tax more acceptable and less strenuous than evading.

It's better to pay taxes than to divide your assets among a few obscure people. I feel obligated to pay taxes, because with taxes my country can develop better. Yes, there may be doubts about the management of tax money due to corruption, but I'm sure that's not all. It will only create new problems if you don't obey the country's rules. Some famous people in the world tried to avoid taxes in various ways but in the end they became fugitives from the state. Even if caught it seems that the fines will be more severe.

I think the key word in your story of your relative is he ‘passed’. I don’t think any alive person would willingly give away their assets and money just to avoid some tax. Let’s be honest, There are plenty of ways billionaires do to avoid tax without having to cut on their spending or money in general.

Why would you give away money just to avoid taxes? If you give away money to avoid taxes, you lose MORE money because you gave away 100% of that money instead of only losing whatever the tax % would be lol.

This idea makes no sense.

I've always wondered whether giving away Bitcoin randomly to addresses might be a way some ultra-rich avoid estate taxes, someday.

Let's say Satoshi wanted to avoid the estate tax, set to go back to 45% on all amounts over $6.8 million beginning in 2025. Assuming he is alive, that would be quite the tax bill. Government would be salivating at the prospect.

Is it theoretically possible if you were Satoshi to just give away $17,000 worth of Bitcoin randomly to 4 million addresses, utilizing the legal annual per-person gift tax loophole? Would such an event even be workable if Satoshi (or anyone else) wanted to give away $17k each randomly? Could the choosing of addresses be achieved by a computer program? Would there be any way to know if the incoming .25 Bitcoin per giveaway was legit and not some scam if you saw it waiting for you?

A relative of mine gave away all money to charity above the estate tax limit to avoid the estate tax a few years back when he passed. But with Bitcoin, it seems there would be interesting wrinkles possible as an alternative to formal charities.

I suspect someday a billionaire might try something just like this to avoid the estate tax and spread the money out, instead of paying the government, while keeping some degree of anonymity for the receiver and sender.

Thoughts?