Topic: Trading BTC/Crypto for real assets/ FIAT (Read 194 times)

The smartest way to invest in digital assets is to build a well-diversified portfolio based on your risk preference and investment goals. Such a portfolio would likely include a substantial holding in bitcoin and small exposure to promising tokens. I have found a trustworthy token sale project. It is called Socratus.  It is an insurance ecosystem which provides a digital platform for insurance companies. So any insurance company can connect the platform to become the part of Insurance Digital Ecosystem. Their main aim is to create a win-win insurance whereby you get instant claim payment,  fair and transparent dealing and friendly prices. They are also helping insurance companies to reduce costs (it can be reduced from 15 to 25 %) and get their business on a new level. Also, they are powered by Smart-contracts & Socratus Oracles. It means that there is no more solo human decisions to pay or not to pay, no more lingering manual claims handling procedures.

It's clear now.

There are multiple threads about taxation and reporting running currently. Some accurate and some not.  This is to clarify the understanding of the current regs (esp in the USA) regarding reporting requirements. Many people on this site would like to know what is possible and what is not given the KYC and onerous requirements for the major trading platforms. This was only an informative thread to show that there are ways to move from Crypto to Fiat/real property without triggering automatic reporting.

I don`t understand the purpose of this thread.Are you asking a question?
Are you trying to explain the taxation process to other people?
Are you saying that crypto taxation can be avoided,when it comes to buying real estate in the USA?
I`m not familiar with the US laws.

There are 2 sides to a transaction. A buyer and a seller. In many countries, regulated firms are required to KYC, this by nature will result in a taxable or recorded event (for later taxation and assuming you have Crypto that has gained value) for BOTH the buyer and seller. However, for instance in the US right now a PRIVATE party can accept Crypto without triggering a reportable event. If a buyer transfers coin to a seller and then the Seller exchanges that for FIAT it is only the Seller that has a recorded event. (That said, in most countries both parties have tax reporting requirements however in practical matters it is up to each party in a PRIVATE transaction to report their own transaction.) Let's say Party A wants to purchase real estate DIRECTLY from Party B. Party A transfers coin to Party B who then cashes in the coin. Party B had to have compliance done on them in order to cash in the coin - thus that is reported. Party A however is not reported and thus has moved their coin to 'real assets' without triggering a reportable event. (Not withstanding that they are likely supposed to report that event). This is a slight over simpimplification and there have to be some unique parameters (like Party B must own the real property without a mortgage and properly record a deed upon transfer) however this kind of trade is possible under the current regulatory environment. And yes. It has been done.