Topic: Sell BTC in United States and Tax Implications (Read 199 times)
The tax implications for foreign investors depend on whether they are classified as foreign residents aliens or non-residents by the United States government. Non-resident foreigners are not subject to capital gains tax, but capital gains tax will most likely be paid in your home country. ..
If you have no problem with KYC/AML, it will be easier then. Is there any trusted and big local exchange in your country? I'm sure that there are some.
Here, I may suggest you research Kraken and also Coinbase, but not Coinbase pro.
Here, I may suggest you research Kraken and also Coinbase, but not Coinbase pro.
Thanks for the suggestions. Just curious why do you exclude Coinbase pro above? Was looking to use coinbase pro for this.
There are many exchanges through which you can convert bitcoin into dollars anonymously, there are many sites that offer the service of withdrawing money from these ATMs to dollars in the United States, and also I think the United States has the largest number of automated bitcoin ATMs in the world you can also sell Bitcoin and withdraw it by these ATMs.
I think the tax will not be so great for withdrawing money from the Bitcoin ATMs.
I think the tax will not be so great for withdrawing money from the Bitcoin ATMs.
Selling on bitcoin atm probably is not very economical. Never tried it though. I once bought btc in an ATM. It's 20% mark up compared to exchanges.
There are many exchanges through which you can convert bitcoin into dollars anonymously, there are many sites that offer the service of withdrawing money from these ATMs to dollars in the United States, and also I think the United States has the largest number of automated bitcoin ATMs in the world you can also sell Bitcoin and withdraw it by these ATMs.
I think the tax will not be so great for withdrawing money from the Bitcoin ATMs.
I think the tax will not be so great for withdrawing money from the Bitcoin ATMs.
If you have no problem with KYC/AML, it will be easier then. Is there any trusted and big local exchange in your country? I'm sure that there are some.
Here, I may suggest you research Kraken and also Coinbase, but not Coinbase pro. They offer high limits and also speed. For local exchanges, there will be speedier commonly, moreover withdraw it for fiat directly by wire bank.
https://koinly.io/guides/cryptocurrency-tax-guide/
Source:
https://cointelegraph.com/bitcoin-for-beginners/how-do-i-sell-bitcoins
Here, I may suggest you research Kraken and also Coinbase, but not Coinbase pro. They offer high limits and also speed. For local exchanges, there will be speedier commonly, moreover withdraw it for fiat directly by wire bank.
Also what would be the tax implication of this? I purchased btc out of country. Wanted to do this to bypass FX control of my home country. The total amount is around 10 btc but wanted to do this over one year or so in small amount each time.
If your mind, you can read about the crypto taxation in the US in the following link. There is clear explanation about it. https://koinly.io/guides/cryptocurrency-tax-guide/
How about Bitcoin ATM's ? you can withdraw your BTC anonymously.
It may be, but the fee is very high if using BTC ATM. He must also compare the efficiency or speedy with the fee to make the transaction clear enough and of course, not wasting much money only for fees. moreover, it is high amount of BTC.Does Bitcoin ATM's also buying Bitcoin or you can sell your Bitcoin in some Bitcoin ATM's? I thought it is only for buying Bitcoins.
Commonly, BTC ATM is used for buying BTC. But, there are also some BTC ATMs that offer the bi-directional functionality to buy and sell using BTC ATM. But of course, he must find the ATM correctly and think about the very high transaction fees if using the BTC ATM. Source:
https://cointelegraph.com/bitcoin-for-beginners/how-do-i-sell-bitcoins
I don't know about tax implications in the US. but P2P marketplaces can give you some kinda of freedom when you want to buy and sell bitcoin.
You can go to the thread Help: A list of LocalBitcoin alternatives (P2P marketplaces) to get more ideas and discussions.
You can go to the thread Help: A list of LocalBitcoin alternatives (P2P marketplaces) to get more ideas and discussions.
Thanks what would you suggest to use in US to sell BTC. My concern is reliable irreversible payment method. For example I see a lot of posts on localbitcoin looking to buy btc with paypal/venmo etc. Those payment methods doesn't sound safe. Plus I don't want to meet people in person to get cash. Especially in this covid environment.
it depends on your tax status in the USA. https://www.investopedia.com/ask/answers/06/nonusresidenttax.asp
you will generally not be subject to any tax withholding from exchanges, but if you cross certain volume thresholds (like $20k + 200 transactions in a year) then regulated exchanges like those mentioned will send the IRS a form 1099-k notifying them of your activities.
Quote
The tax implications for foreign investors depend on if they're classified as a resident alien or nonresident alien by the U.S. government.
Nonresident aliens are subject to no U.S. capital gains tax, but capital gains taxes will likely be paid in your country of origin.
If you are a resident alien and hold a green card—or satisfy resident rules—you are subject to the same tax rules as a U.S. citizen.
Nonresident aliens are subject to no U.S. capital gains tax, but capital gains taxes will likely be paid in your country of origin.
If you are a resident alien and hold a green card—or satisfy resident rules—you are subject to the same tax rules as a U.S. citizen.
you will generally not be subject to any tax withholding from exchanges, but if you cross certain volume thresholds (like $20k + 200 transactions in a year) then regulated exchanges like those mentioned will send the IRS a form 1099-k notifying them of your activities.
Thanks for the detail explanations. 20k or 200 trade threshold sounds pretty low to me. Guess a lot of pro traders on the exchange will get this form. I wonder how do they file taxes? My case would be different since I'm just selling btc. I'm US resident btw.
How about Bitcoin ATM's ? you can withdraw your BTC anonymously. Dont know about the process but you can try.
(....)
Does Bitcoin ATM's also buying Bitcoin or you can sell your Bitcoin in some Bitcoin ATM's? I thought it is only for buying Bitcoins.(....)
Btw, for OP. You can also try to use https://www.bestchange.com/ for that part since BestChange provides some list of exchanges where you can sell or buy Bitcoins. Just always remember to research first or ask for some feedback about some exchanges that you will have your transaction. 10 Bitcoins is a quite large amount, be careful dealing on some random people or services.
How about Bitcoin ATM's ? you can withdraw your BTC anonymously. Dont know about the process but you can try. The only problem you'll face is the amount you can withdraw in ATM's which only has limited amount of money, so you might do these several times.
Another options exchanges, there are several exchanges that supports conversion between Crypto to Fiat and vice versa.
Another options exchanges, there are several exchanges that supports conversion between Crypto to Fiat and vice versa.
Hi can you help suggest fastest/safest way to sell btc in United States? These are my own btc so don't mind KYC/AML verification. Concern is speed. Also wanted to avoid the risk of flagging as money laundering thus get account shut down and money frozen.
if speed is a concern, then centralized exchanges and bank wire withdrawals are usually the best route. gemini, coinbase pro, kraken, and bitflyer are easily liquid enough to handle those amounts and they all process wires quickly. all except kraken also offer ACH bank withdrawals (no fees) if you are willing to wait a day or three longer for the money to hit your bank account. when i withdraw from coinbase pro via ACH i generally receive funds on the second businesses day after submitting the request.
as far as money laundering risks go, that depends where the bitcoins are sourced from. if they are "clean" (for example, outputs withdrawn from exchanges and other whitelisted services, mined outputs) you should not have a problem, although you might consider spreading your sales to multiple exchanges to avoid volume-based AML measures.
if the coins come from questionable sources, you might consider dealing with that issue first.
Also what would be the tax implication of this? I purchased btc out of country. Wanted to do this to bypass FX control of my home country. Total amount is around 10 btc but wanted to do this over one year or so in small amount each time.
it depends on your tax status in the USA. https://www.investopedia.com/ask/answers/06/nonusresidenttax.asp
Quote
The tax implications for foreign investors depend on if they're classified as a resident alien or nonresident alien by the U.S. government.
Nonresident aliens are subject to no U.S. capital gains tax, but capital gains taxes will likely be paid in your country of origin.
If you are a resident alien and hold a green card—or satisfy resident rules—you are subject to the same tax rules as a U.S. citizen.
Nonresident aliens are subject to no U.S. capital gains tax, but capital gains taxes will likely be paid in your country of origin.
If you are a resident alien and hold a green card—or satisfy resident rules—you are subject to the same tax rules as a U.S. citizen.
you will generally not be subject to any tax withholding from exchanges, but if you cross certain volume thresholds (like $20k + 200 transactions in a year) then regulated exchanges like those mentioned will send the IRS a form 1099-k notifying them of your activities.
Sell it here and use the escrow service like Ognasty and other trusted user to do the escrow service transaction. This one way safer to sell btc here rather than using paypal. There are many users here also interested in buying btc and prerry sure you can sell all your btc here.
Aside from that if you do not trust escrow service then better to use banks for payments. Making deal online or transactions online would be difficult. It is still better to sell btc in your areas that can do meet up.
Aside from that if you do not trust escrow service then better to use banks for payments. Making deal online or transactions online would be difficult. It is still better to sell btc in your areas that can do meet up.
Thanks actually I would prefer escrow service. How is the btc price usually determined if buy/sell here at forum? Is it usually higher or lower than exchange? Obviously I'm selling for now so hoping it's better than exchange.
1. Be anonymous as much as possible because such money in your custody could attract issues.
2. search google and watch YouTube videos on the exchanges in USA, then you will have an idea of what to do.
3. Also trying to watch videos and some crypto materials relating to crypto tax in the US.
I hope this help in a little way.
2. search google and watch YouTube videos on the exchanges in USA, then you will have an idea of what to do.
3. Also trying to watch videos and some crypto materials relating to crypto tax in the US.
I hope this help in a little way.
Thanks this is very helpful. I've already done some trading in US exchange so aware of the operations. But I'm not sure the impact of doing this in larger amount (like 10 btc over one year period, actually each transaction amount is not that big) in exchange like Coinbase.
Hi can you help suggest fastest/safest way to sell btc in United States? These are my own btc so don't mind KYC/AML verification. Concern is speed. Also wanted to avoid the risk of flagging as money laundering thus get account shut down and money frozen.
Also what would be the tax implication of this? I purchased btc out of country. Wanted to do this to bypass FX control of my home country. Total amount is around 10 btc but wanted to do this over one year or so in small amount each time.
Sell it here and use the escrow service like Ognasty and other trusted user to do the escrow service transaction. This one way safer to sell btc here rather than using paypal. There are many users here also interested in buying btc and prerry sure you can sell all your btc here.Also what would be the tax implication of this? I purchased btc out of country. Wanted to do this to bypass FX control of my home country. Total amount is around 10 btc but wanted to do this over one year or so in small amount each time.
Aside from that if you do not trust escrow service then better to use banks for payments. Making deal online or transactions online would be difficult. It is still better to sell btc in your areas that can do meet up.
Hi can you help suggest fastest/safest way to sell btc in United States? These are my own btc so don't mind KYC/AML verification. Concern is speed. Also wanted to avoid the risk of flagging as money laundering thus get account shut down and money frozen.
Also what would be the tax implication of this? I purchased btc out of country. Wanted to do this to bypass FX control of my home country. Total amount is around 10 btc but wanted to do this over one year or so in small amount each time.
Also what would be the tax implication of this? I purchased btc out of country. Wanted to do this to bypass FX control of my home country. Total amount is around 10 btc but wanted to do this over one year or so in small amount each time.
Hello, that is a great and a smart way to safe money.
while i may not be able to guide you on exactly what you need to do in order to be safe here are the rule of thumb approach i feel will help you.
1. Be anonymous as much as possible because such money in your custody could attract issues.
2. search google and watch YouTube videos on the exchanges in USA, then you will have an idea of what to do.
3. Also trying to watch videos and some crypto materials relating to crypto tax in the US.
I hope this help in a little way.
Hi can you help suggest fastest/safest way to sell btc in United States? These are my own btc so don't mind KYC/AML verification. Concern is speed. Also wanted to avoid the risk of flagging as money laundering thus get account shut down and money frozen.
Also what would be the tax implication of this? I purchased btc out of country. Wanted to do this to bypass FX control of my home country. Total amount is around 10 btc but wanted to do this over one year or so in small amount each time.
Also what would be the tax implication of this? I purchased btc out of country. Wanted to do this to bypass FX control of my home country. Total amount is around 10 btc but wanted to do this over one year or so in small amount each time.
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