Topic: How does one safely deposit large USD amounts ($50k-$100k) after selling BTC? - page 3. (Read 10766 times)

withdraw $9999 each time. and open multiple accounts

Your bank account is linked to coinbase, right?  You're not holding bitcoin elsewhere in an "offshore" account, right, so you're not using an actual wire transfer?  If you're just dealing with Coinbase then your bank will see where the funds came from and you should check with your bank what their policy is on bitcoin.  My bank was opposed to bitcoin and accepted the coinbase transfer one time only and I was warned not to do it again.

the question i would ask is why would you want $50k in one day..

in the future just sell what you need. $500 a week to pay the bills and feed yourself, maybe $20k to get a new car.. but cashing 100% out.. never.. think about retirement not a quick lottery win that you end up spending in a day

Thanks Deebo.

I would be using coinbase.com unless there is a better alternative at the time. As per your advice, I will definitely ask my bank before I do it. I just wonder if they ask me what it's from and I tell them from selling digital currency/property, if that will make any difference? or raise additional flags? I don't want my bank account shut down or frozen or anything. Maybe this is not realistically going to happen, which would be good.

Does anyone have any experience with withdrawing large dollar amounts to their bank account with coinbase?

Just talk to your bank ahead of time before you send the deposit.  Make sure to ask them about their policy on any holds for large wire transfers.  Any deposit over $10k requires the bank to send a report to the IRS but that won't get you into trouble as long as you declare that money as income and pay taxes on it at the end of the year.

Honestly you're more likely to run into problems with the bitcoin exchange than you are with your bank.  I don't know if it's been sorted out now but I remember reading a few months ago about how Bitstamp was trying to make sells "prove" the source of their BTC before they would allow them to withdrawal USD.  IIRC they let them exchange the BTC into USD (and took their fee for doing so) and only notified them of the "prove your source" requirement after they had initiated the USD wire transfer.

Once you get the money out of the exchange I doubt you will run into many problems (check with your bank first anyway just in case.)  Once the bank recieves the wire transfer in your name they're legally obligated to give you that money (as long as its rightfully yours.)

What do you mean by keeping it cash? It's already in BTC.

I am speculating and looking to recoup some of that into cash. It sounds like you're saying I can't sell my BTC for USD and deposit that into my bank account safely (in the amounts I am referring to).



For example, by using coinbase.com to make the sale of btc into usd

Hi, honestly your better off keeping it cash because you will get taxed and even your bank account frozen cause your bank may try to pull a fast one  and start making accusations like 'how do we know this money wasnt made illegally' etc. you dont want the hassle buddy.

If you want to buy items and the only way to do it is via card or bank trf then you deposit the cash into your account and pay for it straight away.

A really illegal solution is to launder it and pay the minimal tax you can.

Dont worry in a few years time youll be making all your transactions out of your wallet and your kids will be asking you questions like 'What was it like having to deal with CASH and BANKS' like your a really old guy lol.

 

I should add: I would NOT be trying to break the law in any way whatsoever.

The goal of my question is not on how to evade taxes or proper channels.

I just want to be able to do my deposit without it being stopped or getting me into trouble somehow.

I don't think there is a way around this that would not open you to federal charges. You could attempt to move it slowly on local bit coins etc. but to sell that much quickly you would be liable for taxes which stinks, but it would be better than multiple felonies. 

I am looking into the future if I decide to sell some BTC, especially when a single bitcoin is worth many thousands or tens of thousands of US dollars. By the way, I live in USA and am dealing with USA bank accounts.

After reading the article below and others like it, it seems that certain size deposits and withdrawals into bank accounts can trigger a report to the IRS. I never knew this.

http://finance.zacks.com/federal-banking-rules-withdrawing-large-sums-cash-1696.html


Well, what if in the future, I wanted to sell $50,000 or $100,000 worth of bitcoin using Coinbase.com? They send it to your bank account. Would this create a problem?

Depositing this size dollar amount would be a new thing for me and I wouldn't want to screw it up.

What exactly does the bank/government do when this happens? When it's reported, then what? They would ask you what it's for, I imagine. I don't think saying "I sold some bitcoin" would be a smart answer, but it's the truth. I wouldn't want them to hold my money and risk them not giving it to me because it was bitcoin related. Could they do that?

I don't typically deal in that size of deposit/withdrawal so it would be very out of the ordinary for my accounts.

I realize I would have to pay tax on it (which sucks but that's how it goes in America), and I am not trying to evade any laws.

Can anyone with experience in this area help me out with advice and their experience with what happens?

I'm sure this information would help others with similar questions.