4 ms·

I'm surprised no one has mentioned Bitcoin yet -- which like him or not, would have made this man's life much easier and more private.

mirimir 11y ago
I'm not sure how using Bitcoins would have helped. He could have easily purchased Bitcoins. But using them to anonymously pay his blackmailer(s) would have been nontrivial. Even if he had known how, or had advice from someone who did, I suspect that he'd have been pushing the limits of most mixing services. Also, the US classifies Bitcoins as capital investments. And so he would have had to report gains and losses in his income tax returns.
- ccvannorman 11y ago
  true, but the 10k withdrawal would have been a non-issue.
  - mirimir 11y ago
    I don't think so. Consider that I want to discreetly give someone $80K. If I withdraw $80K, the bank must report that. But if I withdraw 10x $8K, I'm arguably structuring to avoid reporting. So let's say that I want to buy $80K of Bitcoins. If I do that in one $80K transfer, the bank must report that. And with 10x $8K, I'm still structuring. And either way, in that year's tax return, I'll need to report capital gains and losses on the $80K of Bitcoins.
    - shakethemonkey 11y ago
      You wouldn't have to report capital gains unless you had sold the asset. But transferring the asset to your blackmailer, perhaps you might have to pay gift tax, unless you filed a 1099. [1] [1] http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employ...
      - mirimir 11y ago
        I'm not very familiar with US tax law. But the key point, I think, is that once I have that $80K Bitcoin asset, the reporting requirements for it will be comparable to those for $80K in my bank. Bitcoin only helps if I can buy those Bitcoins without reporting. So I'm in the same situation as accumulating cash to send via DHL or whatever.

mirimir 11y ago

I'm not sure how using Bitcoins would have helped. He could have easily purchased Bitcoins. But using them to anonymously pay his blackmailer(s) would have been nontrivial. Even if he had known how, or had advice from someone who did, I suspect that he'd have been pushing the limits of most mixing services. Also, the US classifies Bitcoins as capital investments. And so he would have had to report gains and losses in his income tax returns.

ccvannorman 11y ago
true, but the 10k withdrawal would have been a non-issue.
- mirimir 11y ago
  I don't think so. Consider that I want to discreetly give someone $80K. If I withdraw $80K, the bank must report that. But if I withdraw 10x $8K, I'm arguably structuring to avoid reporting. So let's say that I want to buy $80K of Bitcoins. If I do that in one $80K transfer, the bank must report that. And with 10x $8K, I'm still structuring. And either way, in that year's tax return, I'll need to report capital gains and losses on the $80K of Bitcoins.
  - shakethemonkey 11y ago
    You wouldn't have to report capital gains unless you had sold the asset. But transferring the asset to your blackmailer, perhaps you might have to pay gift tax, unless you filed a 1099. [1] [1] http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employ...
    - mirimir 11y ago
      I'm not very familiar with US tax law. But the key point, I think, is that once I have that $80K Bitcoin asset, the reporting requirements for it will be comparable to those for $80K in my bank. Bitcoin only helps if I can buy those Bitcoins without reporting. So I'm in the same situation as accumulating cash to send via DHL or whatever.