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If you want to be legit you'll take care of these aspects. For example, I bought bitcoin by moving money through a bank wire to a well regarded bitcoin exchange
by 21 10y ago
If you want to be legit you'll take care of these aspects. For example, I bought bitcoin by moving money through a bank wire to a well regarded bitcoin exchange (Bitstamp). The same for cashing out of bitcoin. So I have a clear money trace.
If you mined or gained your bitcoin by buying it through local bitcoin, the taxman might give you some trouble, but generally, the presumption of good will and non-guilty still applies, meaning that if they don't agree, it kind of their job to prove that you are guilty of something (ie: you got your bitcoin through ransomware)
- lisper 10y ago> If you want to be legit you'll take care of these aspects. Well, yeah, obviously. The issue is not how to deal with honest actors, it's how to deal with dishonest ones. (See the update to my OP.)
- tgb 10y agoActually, I think you lost track of the start of this thread which was explicitly about honest actors and whether they get swept up with the dishonest ones.
- lisper 10y agoYes, you're right. :-( Sorry about that. I would go back and edit my OP but it's locked already.
- Anderkent 10y agoThe same way as you deal with all other kinds of money - you enforce at the transaction points. If you're spending more than you're earning, or your bank account has unexplained cash, the tax man will ask you what's going on.
- PeterisP 10y agoThe point is that if your records are a mess, then it's your problem - once the taxman gets note of a part of "cashing out" (either by seeing the BTC->dollars transaction, or seeing whatever large you bought for these dollars), they don't need to find out if you earned these bitcoins or at what price you bought them. They can simply ask you to provide the evidence yourself, and if you cannot, then tax the full rate on the full amount.