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Even if you received the BTC for goods and services, and then held them for 5 years and they 20x in value... you still owe capital gains. It's like saying: 5 y
by beambot 10y ago
Even if you received the BTC for goods and services, and then held them for 5 years and they 20x in value... you still owe capital gains. It's like saying: 5 years ago I sold goods and services for $100, bought stocks with the $100 and now that stock is worth $2000. When you sell the stock, you pay capital gains on $1900; you also should've reported that $100 in revenue from 5 years ago.
As for anonymity... you lose it when you associate a bank account to get liquidity (as mentioned by GP: "nominate a bank account"). Of course, this assumes you can't get liquidity in some other way... but that's non-trivial with large qty of BTC.
- lisper 10y ago> As for anonymity... you lose it when you associate a bank account to get liquidity Yes, that's true, but that not enough to enforce the tax code. (See the update to my OP.)
- twblalock 10y ago> Yes, that's true, but that not enough to enforce the tax code. Uh, yes it is. Money came into your bank account, and you'll need to explain its origin if the IRS audits you. Do you honestly believe the IRS would just give up on enforcing the law because you used a tumbler before you converted the bitcoins to USD and put the money in your bank account? The fact that you have the money in your account at the end of that process is what really matters.
- deleted 10y ago[deleted]
- mistermann 10y agoIn Canada I believe (don't own any bitcoin) you can withdraw from a few dedicated bitcoin ATM's, as far as I know you don't need to also use a regular bank ATM card in the process.
- throwaway91111 10y agoSure. But the enforcement is said law of near impossible if you're trying to avoid it and you find a willing BTC purchasing person.
- deleted 10y ago[deleted]
- obstinate 10y agoA good chunk of tax law is unenforceable if the evader is really clever. That's like observing you can murder someone and get away with it if you leave no evidence. But it's a big risk. You wanna risk jail to keep 15-18% extra? I know I don't.