Topic: How to give BTC to a familiar without paying tax? (Read 884 times)
And what for that that to list, let everything will be at the father if it is necessary the child can use through his purse.
Imagine that a 16 years old boy wants to invest $3,000 in BTC.
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
That is a little bit impossible and it depends on that in which country you life cause sometimes law allow to give your childrean money without paying taxes (like gift) but i think that 200k is to big amount of money. He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
If Bitcoin is already legalized and used as a currency. I don't see why you need to pay taxes to simply give away Bitcoin.
People think that tax evasion it's something you can get away easily. Do not fall for this stupid idea that banks or governments cannot track your btc because they can. And sooner or later they'll be arresting big guys of bitcoin and applying big fines. In my country I have declared all bitcoins I have and fortunately I do not need to pay taxes because the amount is low.
Which country is it ? I'd be interested to "evade" in such country as mine has crazy taxes
This is way too complicated in America, they don't say how you declare something you get as reward for a bounty
People think that tax evasion it's something you can get away easily. Do not fall for this stupid idea that banks or governments cannot track your btc because they can. And sooner or later they'll be arresting big guys of bitcoin and applying big fines. In my country I have declared all bitcoins I have and fortunately I do not need to pay taxes because the amount is low.
If the government not legalized yet, no need to pax tax. Because not have a rules about bitcoin.
I sure if bitcoin legalized by the government, the government will setup the rules.
I sure if bitcoin legalized by the government, the government will setup the rules.
Imagine that a 16 years old boy wants to invest $3,000 in BTC.
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
There is no need to transfer the $200,000 btc because he could just give his private keys directly to his son specially that private key will not require person name during the creation of the account besides he acknowledge that the money is originally own by his son. He could consider it as an asset that will leave to him if he depart from this world but still he should continue to guide and monitor his son that the money will be use properly.
Imagine that a 16 years old boy wants to invest $3,000 in BTC.
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
It will depend on the country where that boy is. And besides bitcoin is anonymous I don't think we need to give explanation to authorities where your bitcoin came from they even don't have a way on how to track it. You can just tell them that you mined it 2 years ago, will they be able to check it?
I don't know from which country you are. It is probably different in exact country. I'm in Russia and I use YoBit exchanger, where you can trade even from 1 year old, because of no private information asked there for participation, besides an e-mail. Next, here we can open an account in a bank from 14 years, so an individual of this age or above can simply transfer money from the exchanger to his bank's account. For now Russia hasn't any taxation towards crypto profit, so there will be no tax.
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
There are many options starting from the safest and ending up with the ones that could be against the law and potentially lead to fines and prosecution.
- Check what amount you can earn tax free without declaring it at all. For instance in the UK its £11k a year. Divide your coins into tax free sums and withdraw each year without having to pay any tax.
- Gifts from your parents are always tax free up to a point, same as inheritance. Withdraw as much as your regulations allow you to and don't touch the rest for a couple years, then repeat.
- Sell it for cash to someone you know, maybe even a family member. If your taxes are over 20% it might be worth it to give that person 10% discount and you'll both earn on it.
- Buy gift cards and go shopping. You won't have money but you'll have goods that you can use or sell for cash.
- Go abroad to a country with no capital gains tax, get a bank account there and withdraw your money.
- Get fake bank and exchange accounts, get a debit card and withdraw through an ATM. (Note that it will count as fraud and tax evasion if you're caught)
I don't know about the other countries, but in my country, an one time monetary gift up to 50k is allowed to my children and completely exempted from tax on both sides. So if I gift my son 50k, that amount will be deducted from my total income and my son will not have to pay tax as well because it is a gift my his father. However, reporting of that gift is necessary, failing which penalty will be taken. I believe every country has similar type of gifting scheme available, just the amounts will be different.
If Bitcoin is not yet legalized in the country of that kid and father then they simply can transfer the funds to a wallet owned by the kid. They will probably have to pay the fees of the transaction but there will be no taxes if there are no regulations for Bitcoin in their country. And if Bitcoin is already legalized and used as a currency in that country then i'm afraid there is no way they can avoid paying taxes, and if they find a way to do it, it won't be legal and lead them to something worse.
Has the ability to display bitcoin to virtual credit card. For registration does not even need to provide passport details. However in this case there is a restriction on withdrawals but I don't think you will have a very large amount of output every day. If you desire now there are many opportunities to avoid paying taxes.
I don't see why you need to pay taxes to simply give away Bitcoin. Transfer your coins out of the exchange, and into a desktop/hardware wallet, and you can transfer to the recipient from there. It should be none of the exchange's business at that point. For all they know, you could have transferred your Bitcoins to a third party in exchange of goods or services. The recipient could simply use a mixing service such as Chipmixer to throw off the scent, if that's even necessary.
Thet being said, the recipient will have to pay taxes once he cashes out on an exchange, but you yourself would have been taxed too, so it doesn't matter.
Thet being said, the recipient will have to pay taxes once he cashes out on an exchange, but you yourself would have been taxed too, so it doesn't matter.
I think a donation made with inside of the family does not constitute any tax. Especially someone made gratuitously by his father. The father only acted as the gate for his minor kid to trade Bitcoin and earn money from it so by paper the kid is really the owner of the Bitcoin. Think of it this way will sending Bitcoin to a family member be taxed? Of course not it is your money and you are giving the transfer with your family member.
Note:
This is on assumption that there is really a law prohibiting minors to trade Bitcoin. Because from what I know minors can start to create a stock market broker account as early as they can produce their own signature.
Note:
This is on assumption that there is really a law prohibiting minors to trade Bitcoin. Because from what I know minors can start to create a stock market broker account as early as they can produce their own signature.
sukamasoto : What is your country ?
Indonesia
My government already state that my people can't use bitcoin for transaction but they still not make regulations to forbid bitcoin usage so I can still use and own bitcoin without fear getting into jail. But I'm using bitcoin with my own risk and tax free
sukamasoto : What is your country ?
Indonesia
My government already state that my people can't use bitcoin for transaction but they still not make regulations to forbid bitcoin usage so I can still use and own bitcoin without fear getting into jail. But I'm using bitcoin with my own risk and tax free
sukamasoto : What is your country ?
Find a place where you don't need to pay the tax. I'm assuming that your government already legalized bitcoin so they require bitcoin trader to pay the tax.
My country still no need to pay the tax so everyone is able use bitcoin without pay the tax
My country still no need to pay the tax so everyone is able use bitcoin without pay the tax
Imagine that a 16 years old boy wants to invest $3,000 in BTC.
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
Teenage boy doesn't need to go through some major exchange can use something like localbitcoins/paxful. His father can transfer his money to him and in case of having 200,000$ lets say that kiddo can and will be able to buy some things for bitcoin directly without the need of the goverment to know that father has gave him the coins. Either way father can give him coins as a "gift" to the kid I mean srsly....
But if I could buy something with bitcoin (with high value specially) personally I would opt for that more or even buy something like gold or invest directly than to swap between fiat because of taxes. If price go up there will be more options to use it, today you can use it in a good way as well.
So, $3000/month as a "gift"
Expend btc instead of fiat when buying
Any other option?
I also though about selling the $200000 (from father account) and buying them from 18 year old at the same time. It should incurr a 0.25% fee ($500)
Since his father created an account for his kid. I assume that the father acknowledges that the money on his account are not his.
In that case you can just withdraw the bitcoins to a secure bitcoin mixer. As you know, bitcoin is pseudonymous not anonymous. What bitcoin mixer does is it confuses bitcoin transactions. You can use https://chipmixer.com for that. Fees are not required but you can always donate.
Imagine that a 16 years old boy wants to invest $3,000 in BTC.
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
Teenage boy doesn't need to go through some major exchange can use something like localbitcoins/paxful. His father can transfer his money to him and in case of having 200,000$ lets say that kiddo can and will be able to buy some things for bitcoin directly without the need of the goverment to know that father has gave him the coins. Either way father can give him coins as a "gift" to the kid I mean srsly....
But if I could buy something with bitcoin (with high value specially) personally I would opt for that more or even buy something like gold or invest directly than to swap between fiat because of taxes. If price go up there will be more options to use it, today you can use it in a good way as well.
So, $3000/month as a "gift"
Expend btc instead of fiat when buying
Any other option?
I also though about selling the $200000 (from father account) and buying them from 18 year old at the same time. It should incurr a 0.25% fee ($500)
Imagine that a 16 years old boy wants to invest $3,000 in BTC.
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
Teenage boy doesn't need to go through some major exchange can use something like localbitcoins/paxful. His father can transfer his money to him and in case of having 200,000$ lets say that kiddo can and will be able to buy some things for bitcoin directly without the need of the goverment to know that father has gave him the coins. Either way father can give him coins as a "gift" to the kid I mean srsly....
But if I could buy something with bitcoin (with high value specially) personally I would opt for that more or even buy something like gold or invest directly than to swap between fiat because of taxes. If price go up there will be more options to use it, today you can use it in a good way as well.
Imagine that a 16 years old boy wants to invest $3,000 in BTC.
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
He is under 18 so he can't do it, but his father creates a trading account and let's the teenager invest as if he (the kid) was him (the father).
Two years lates, the kid is now 18 years old. But legally he owns $0 worth of bitcoin and his father owns $200,000 (price has gone up, etc)
What can they do to give the $200,000 worth of bitcoin to the teenager without paying taxes?
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