Topic: Some guy made 200 million from ETH - page 2. (Read 3632 times)

How would you explain where you got the cash from? If you report it each year then you can prove that it is in fact capital gains.

A good story indeed.
But is it real?
If it is, he is f*cked. If not, then there is no hurting making a good story for reading.  
Taxes. Whew that is a problem every consumer is stressed about. Why do they have to tax something you own.
With crypto currency I am sure he is trying to avoid that.
To hell with tax which just go to the pockets of the greedy government crocodiles.
And for that large amount I am sure they will do their best to make him pay.  

So what happens if you trade on Cryptsy, Mintpal, or any other altcoin exchange that is now dead? How do you prove entry records on these altcoins in and out if the exchanges are dead?

Even if you were lucky to save your trades, what does it prove? The addresses could be anything. If there's no way to log in into the account and see that the addresses belong to the exchanges, how do you prove this to the IRS or whatever?


Why would you report you have any bitcoin? just wait until you cash out and pay the capital gains tax?

In most countries Bitcoin is just considered part of your capital. Alongside stock, gold, real estate and what not. Bitcoins aren't taxed separately. In your yearly tax returns there's often an option to check a box that you own this kind of capital. That's enough, unless your capital is worth more than a minimum amount (25k in my country) then you need to specify what your capital consists of.  

You pay capital gains tax over the total sum of your capital. This tax is often a lot lower compared to income tax. If in 2016 your Ethereum was worth a few thousand dollars and in 2017 it's worth a few million dollars, then you pay the capital gains tax over those million dollars and the rest is all for you.    

However, if you didn't own any Ethereum in 2016 and you suddenly own millions worth of it in 2017, then you're going to have to explain where you got them from. If it was purely because of succesful speculation, then it's capital gain, if you got the Ethereum through some other means (like through work) then it's income tax.  

Selling your bitcoin to fiat varies greatly by country. The EU recently ruled that EU countries are not allowed to charge VAT on purchases and sales of cryptocurrencies. So after you paid capital gains of your millions of ETH, the rest is all for you, no more taxation from selling it to fiat.  

Oh and  the country is The Netherlands, 1.3% capital gains is very low and also the reason the Dutch are a major tax haven. There are also countries that don't have capital gains tax at all (Hong Kong, Malaysia, New Zealand) but they're also less secure and less accessible.  

Even 5% or 15% capital gains is quite low compared to any income tax or fines (you may even lose all of it) if it isn't filed properly. I'd much rather pay that than spend a lifetime  hiding my wealth and not being able to use it for stuff like buying actual property. 

Lets hack this adress and share the coins between us.
We will leave him 10.000 coins, that's enough for him.

Hello.
 
I did not get that!
Are they taxing your bitcoins i mean those that you just keep without converting to FIAT
or they are taxing your income (capital gains) only when you convert to FITA i mean the cash that you
receive on your bank account?!

It would be also useful to know which country is that where the tax on  capital gains is so low!

There are many fake news floating around the web like this one but it's still true, anyone will be screwed if you can't pin point the entry. There are some countries which started taxation on Bitcoins but it's still unclear to many.

Well, his start capital was 55,000,000 USD already not very exciting (and yes, he lost -65% already)

Or if the guy is even real..

In a few years, the tax agencies have to realize to reform. Technology seems to progress without them and they are stuck in policy that does not work. They will have to innovate to keep up.
You should just admit your taxes for now. Technology will always outpace any governmental agency.
Just diversify and You will be fine in the eyes of any tax agency.

Let's wait when ETH price would make him a billionaire 

Yes exactly, you can also buy busineses and property with cryptocurrency but I don't know whether it leads to taxes.

If no one knows who he is, why are people assuming he is from USA?

Sure if you lived in a developing country you could easily evade any taxes. Either because their tax agency isn't equipped to detect your wealth or because you could simply bribe the taxman at a very low cost. 


Most countries have a small amount (up to $2.5k-5k) which doesn't have to be declared. Anything above will have to be declared (and that will be noticed by the banks).  

If you become a multi-millionaire people usually want to start solidifying their wealth rather than continue speculating. A diverse set of shares, real estate etc. You won't be able to get any of that with undeclared money.  

You can launder the money, sure, create some business font and declare it all as income. But in most countries that only makes you end up paying more tax than when you would've simply declared your coins.  

Laundering is for when you get money illegally. Black labour, theft, scams, drugs, weapons, anything on the black market. People that make money this way accept the higher tax cost because it means their money would at least appear legit and usable.  

But cryptocurrency isn't illegal. Your trades are completely fine. Laundering money and paying a higher income tax because you wanted to avoid capital gains tax is silly.

The writer of the article is stupid, not everyone is living in the U.S., I heard somewhere the trader is most likely from Malaysia, Indonesia or Singapore, something like that. These countries don't give a fck of taxing crypto.
But then probably Eth insider moving Eth around to one account. These crook Eth insiders are mental crazy from start to pump this vaporware to the price it have today's

I think there is no taxes until you sell for money or buy something with ETH.

I don't think the tax people would worry about, because if you cash out too much or buy expensive things avoid taxes would be impossible.

not necessarily a fake news. that is what happens in a pump and dump system, people get rich over night and very simple. you just have to learn to see the reality not the hyped up bullshit that the shills of each altcoin spread over the internet.
and many investors made a lot of money out of the past 3 months altcoin pump. this is just one news...

for example in case of ETH, you should have bought it back when the shills weren't being paid to advertise and nobody were talking about it. by that time price was lower than 0.07-0.01BTC. then you should have dumped it on top when all the shills were getting paid to make topics all over the internet every day and not wait for it to drop. this coin had over 1000% rise pump.

Here you go:
https://etherscan.io/address/0x00a651d43b6e209f5ada45a35f92efc0de3a5184

I don't know how I would handle that situation if ever I got that money, well I know if we will still continue to hold
and accumulate we will surely have that value soon. Speaking of taxes, I think that depends on to your country's regulation so we should
know what are those so as not to violate and penalize.

The bottom line is if we will not declare all in exchanges they will not notice it, what I'm trying to say is we can withdraw it slowly or whatever we will do just to launder the money we have.

Don't trust everything you read online