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I've never owned any crypto. I'm changing my tax residence for legitimate reasons. (Hardest thing I've done in my life!) But I suppose some crypto owners are c

by nroets 3y ago

I've never owned any crypto. I'm changing my tax residence for legitimate reasons. (Hardest thing I've done in my life!) But I suppose some crypto owners are changing their tax residence without declaring their crypto i.e. no deemed disposal and exit tax.

kahnclusions 3y ago
The big problem comes when they want to use their crypto horde to buy real world stuff. Want to buy a house? Now you need to convert your crypto into fiat and a deed transfer. People will start asking where your funds are coming from. This is where you tend to get caught.
- ethbr0 3y ago
  > People will start asking where your funds are coming from. This is a weird statement. If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it. If it's a mortgage down payment, then the bank is more interested in if your assets are going to disappear (e.g. are they actually a loan from a third party?). I've never had a mortgage bank inquire about my tax situation. If you're talking about IRS audits... then yes, they might be curious how you purchased a giant asset without any declared income. But that's similar to any unreported income situation.
  - taffronaut 3y ago
    >> People will start asking where your funds are coming from. >This is a weird statement. Not in the UK. Here there's a legal obligation on the conveyancing practitioner - which you have to use - to confirm the source of funds for the purchase. They "will ask questions about your salary, request bank statements and ask you to give details of any family inheritances"[1]. [1] https://www.bannerjones.co.uk/your-property/services/buying/online-conveyancing/pages/source-of-funds-check https://www.bannerjones.co.uk/your-property/services/buying/...
    - ethbr0 3y ago
      Are those the new UK regulations intended to prevent dirty money from buying real estate? Or has it always been a thing?
      - krageon 3y ago
        I believe it is also the case in large parts of the EU and yes, that is the reason why.
  - pyrale 3y ago
    > If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it. Yes, but your bank and the bank of the seller both have strict KYC/AML rules to respect. And the seller probably doesn't want to accept a pile of bills that requires laundering.
    - ethbr0 3y ago
      I think we can agree that KYC/AML rules are... somewhat effective, in the face of determination to circumvent. Honestly, to op's point, the IRS audit would be the likeliest to nail you, post-purchase. "Person without demonstrated income suddenly buys expensive asset" is hard to hide and a huge, trackable signal.

by nroets 3y ago

kahnclusions 3y ago

The big problem comes when they want to use their crypto horde to buy real world stuff. Want to buy a house? Now you need to convert your crypto into fiat and a deed transfer. People will start asking where your funds are coming from. This is where you tend to get caught.

ethbr0 3y ago
> People will start asking where your funds are coming from. This is a weird statement. If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it. If it's a mortgage down payment, then the bank is more interested in if your assets are going to disappear (e.g. are they actually a loan from a third party?). I've never had a mortgage bank inquire about my tax situation. If you're talking about IRS audits... then yes, they might be curious how you purchased a giant asset without any declared income. But that's similar to any unreported income situation.
- taffronaut 3y ago
  >> People will start asking where your funds are coming from. >This is a weird statement. Not in the UK. Here there's a legal obligation on the conveyancing practitioner - which you have to use - to confirm the source of funds for the purchase. They "will ask questions about your salary, request bank statements and ask you to give details of any family inheritances"[1]. [1] https://www.bannerjones.co.uk/your-property/services/buying/online-conveyancing/pages/source-of-funds-check https://www.bannerjones.co.uk/your-property/services/buying/...
  - ethbr0 3y ago
    Are those the new UK regulations intended to prevent dirty money from buying real estate? Or has it always been a thing?
    - krageon 3y ago
      I believe it is also the case in large parts of the EU and yes, that is the reason why.
- pyrale 3y ago
  > If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it. Yes, but your bank and the bank of the seller both have strict KYC/AML rules to respect. And the seller probably doesn't want to accept a pile of bills that requires laundering.
  - ethbr0 3y ago
    I think we can agree that KYC/AML rules are... somewhat effective, in the face of determination to circumvent. Honestly, to op's point, the IRS audit would be the likeliest to nail you, post-purchase. "Person without demonstrated income suddenly buys expensive asset" is hard to hide and a huge, trackable signal.