Topic: Have you had any problems with large Bitcoin cashouts? (Read 1839 times)
Not sure how the banking system works, but can you not just deposit it slowly over time into your account? When would alarm bells ring?
I'll be making the transaction in a week or so I'll let you guys know what obstacles I encounter.
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I'm about to make a cash out of about $40k+ and am wondering if I will be met with any resistance. For someone under 18 and residing in Canada what obstacles would there be? I will most likely be selling on something like localbitcoins for cash to a verified person. I will be reporting this $40k+ to taxes (I'm not an idiot I'm not going to try and evade tax on big purchases). If I follow all rules filing taxes etc. Will I receive any trouble? Also will my guardians be notified of my money when I file my taxes?
You will likely raise a lot of red flags if you are trying to transact that amount of funds period.
You will raise even more red flags if you are underage, even if you did earn the funds legitimacy.
I cannot tell you how many times I was questioned when I tried to take money out of the bank (in the US) when I was 16 and 17 years old.
cashouts that big (40k$) can make some problems, im curious however in cashouts in milions, early adopters could tell quite a story i suppose
Yeah, what happens if you send a cool million to an account that never has had a balance over 10k
I think they'll freak out.
Most banks in the US are only FDIC insured up to a quarter mill. Not sure you would want to wire that much in one transaction to one account anyway.
***oops just saw that this was already posted above... Sorry
If you are buying $40,000 worth of stuff, I hope your guardians would notice. Not sure if authorities would ask your guardians about your taxes. You can try calling Revenue Canada and asking them.
This is something that you would probably want to involve your guardians in. They will actually probably be proud of you for making such a good investment. Trying to do everything in the dark cannot end well. Is there any particular reason you need 40k? If you don't need the entire lump for something specific (i.e. car, portion of a down payment on a home, another investment), you don't want to be sitting on all that cash anyways. At least right now, your money is working for you...Cash does nothing for you.
cashouts that big (40k$) can make some problems, im curious however in cashouts in milions, early adopters could tell quite a story i suppose
Yeah, what happens if you send a cool million to an account that never has had a balance over 10k
I think they'll freak out.
first, send 20K, then 50 K, then 100K, then the rest 830K, LOL.
On a more serious note, in US FDIC insurance is up to $250k, so everything above it you can easily partially lose in an unlikely bad situation.
You would probably need to have a different type of account with the bank (Edit:brokerage), where you immediately convert money above 250K into treasury bills.
I've had extreme problems convincing myself to convert real money to fake, in any amount.
This. Selling Bitcoin for fiat feels bad.
OP thanks for the topic though, should lead to some interesting discussion
I agree but I'm not exactly selling bitcoin with the main reason to get fiat, I'm selling Bitcoin for fiat with the intent to buy some things right away. If Bitcoin was more widely accepted I wouldn't have to be doing this in the first place. I could use some service such as snapcard to pay for things with Bitcoin but I don't feel comfortable trusting a 3rd party with transactions of this size.
I'm a hoarder, re-investor so I never cashed out coin to my bank, I pay my electricity out of pocket.
Most I handled from cash/coin was less than $5,000 but any transaction I did was quite smooth from wallet to wallet, regardless the amount. Can't say as much from the side of exchanges and even pools pay out rather quickly.
Most I handled from cash/coin was less than $5,000 but any transaction I did was quite smooth from wallet to wallet, regardless the amount. Can't say as much from the side of exchanges and even pools pay out rather quickly.
cashouts that big (40k$) can make some problems, im curious however in cashouts in milions, early adopters could tell quite a story i suppose
I've had extreme problems convincing myself to convert real money to fake, in any amount.
This. Selling Bitcoin for fiat feels bad.
OP thanks for the topic though, should lead to some interesting discussion
Be careful. That amount is above the going rate to have you killed.
If selling in together or in a few chunks, arrange with the buyer to do the exchange in a bank. Just as a meeting place. I would have a simple receipt for both parties to sign and keep copies of.
You may also consider buying gold. And before turning anything into cash, why not go on a shopping spree?
If selling in together or in a few chunks, arrange with the buyer to do the exchange in a bank. Just as a meeting place. I would have a simple receipt for both parties to sign and keep copies of.
You may also consider buying gold. And before turning anything into cash, why not go on a shopping spree?
i don have tat much bitcoin so tats no problem for me lol
Cryptopaths, please do be careful. Physical risks are just as real as the government compliance risks. There's no harm in consulting some legal advice as well. There are ways to protect your money (and yourself) when dealing with bulk transactions. Good luck to you and let us know how it goes.
(Great learning experience I must say. Smart kid.)
(Great learning experience I must say. Smart kid.)
I will follow all tax regulations so am I correct in assuming there is legally nothing they can really do to stop me making these large cash outs? They won't be able to seize any products I buy etc.?
If your government can and does seize private property when you follow the law well you got bigger problems. $40K is enough for tax authorities to get interested. Make sure you understand your tax liability (if any) and report/pay your taxes and you should have no problems. Also be smart and careful if you are meeting anonymous people using localbitcoins.
Local bit coins would be your best bet. You might regret cashing out your stake so early though. There is a decent chance the value doubles in the coming months.
I'm not cashing out my entire stake at all and I'm not cashing in because I don't believe in the technology I'm simply selling some Bitcoin because I want to buy some things. And yes I also believe we will see a significant rise in price soon, but on the topic of increasing financial gains on investments at this point in time I believe it's smarter to invest in some altcoins because they have much higher chance of things like %10000 return on investment. 1.5 btc in september 2013 invested in NXT would leave you with 350btc now (I'm not meaning to advertise any altcoins in specific but just furthering my point.
But yes once I exchange some of my bitcoin I plan to immediately exchange the fiat for some things I plan to buy so I can't really be blocked from doing this right? Also I'm not going to be putting anything over $1,000 in a bank, all large bitcoin transactions will be done in cash and with the intent to then immediately exchange.
I will follow all tax regulations so am I correct in assuming there is legally nothing they can really do to stop me making these large cash outs? They won't be able to seize any products I buy etc.?
I'm about to make a cash out of about $40k+ and am wondering if I will be met with any resistance. For someone under 18 and residing in Canada what obstacles would there be? I will most likely be selling on something like localbitcoins for cash to a verified person. I will be reporting this $40k+ to taxes (I'm not an idiot I'm not going to try and evade tax on big purchases). If I follow all rules filing taxes etc. Will I receive any trouble? Also will my guardians be notified of my money when I file my taxes?
I pulled out about $60,000 back when litecoin hit $50-ish. Sold to BTC and cashed out through Coinbase. Had no problems at all.
Some tips I got from a banker:
* Domestic ACH transactions (Coinbase to USA) are usually much less suspect and given less scrutiny than international wires (Bitstamp to USA, etc)
* If you're going to have a deposit of over $200,000 (i think that was the thresshold) you should contact your bank rep ahead of time and in good faith, inform them of it.
* Describe your deposit as profits from an investment in international currency trading. This is considered a reasonable explanation in our situation and will result in less scrutiny.
* Most important: Don't move the money out too quickly (if over $100-200k). Let it sit in the bank account for a few months. They look for "in and out" large sums to trigger scrutiny.
I am still curious how people will effectively cash out larger sums though, when Bitcoin hits $5,000+
-B-
Does anyone know what the status of Uni-Credit is, with regard to blocking transactions?
I am in Austria by the way.
I have a figure in mind of around €100k - has anyone had experience with this kind of transaction and this bank?
I had been thinking about just telling them there was a large figure to be transferred into my account sometime in x no. of days and to expect it, also that I am not anticipating any problems. But I don't want to even do this if it raises issues/questions. I was only going to tel them it was from the sale of some assets. But, like i said, i'm reluctant to even do this much, in case, well, you know.. banks!
I am in Austria by the way.
I have a figure in mind of around €100k - has anyone had experience with this kind of transaction and this bank?
I had been thinking about just telling them there was a large figure to be transferred into my account sometime in x no. of days and to expect it, also that I am not anticipating any problems. But I don't want to even do this if it raises issues/questions. I was only going to tel them it was from the sale of some assets. But, like i said, i'm reluctant to even do this much, in case, well, you know.. banks!
Well its a huge amount and the banks will certainly notify your guardians about it.
And I dont suggest keeping that money in the bank, cause if you keep that much of money in bank, the bankers and the tax dept. will certainly ask you about the source of the money, but yes if you file your taxes it wont prove out to be much problem if you are keeping your money with a btc friendly bank
And I dont suggest keeping that money in the bank, cause if you keep that much of money in bank, the bankers and the tax dept. will certainly ask you about the source of the money, but yes if you file your taxes it wont prove out to be much problem if you are keeping your money with a btc friendly bank
In my experience most localbitcoins buyers usually do not like to exceed $2k-$5k per cash transaction so you definitely need to contact several buyers to sell $40k worth quickly. This may not be an option if you live in the sticks.
consider spending it in the form of gift cards, selling to friends, or localbitcoins.. less of a headache that way. if it were me, i'd keep it at least until the end of the year. but that's just me.. i like to save.
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