Say if you own a coin that went to the moon, what would your exit plan be?
How do you pay taxes without the government immediately thinking you are a drug dealer, or an exchange taking your money and running. Even when you do have the USD, where do you put it? If you try to drop a million dollar payment into your bank what are they going to do?
Anybody here that made it that has any advice?
This is a glowie post but I will bite because what I am going to tell you is completely legal. There are international websites that allow you to buy gold with crypto. Once received, you can sell gold for cash. Each way you do this you lose money but it is less than what you would pay in capital gains tax. I should add that if you make under 80k USD as a family, then you don't have to pay capital gains tax anyway so cash out worry free. Some people like gift cards, others wait to cash out until they have received a different citizenship in a country that doesn't tax crypto. If you make it bit, that could be worth the trouble.
exit plan is a spectacular suicide
LOL, good one
i am not joking
>How do you pay taxes without the government immediately thinking you are a drug dealer,
start small in deposits into your bank until you see them approving $10k, then $50k, $100k etc
you pay taxes by clicking the box that says investment income, short or long term cap gains here in the US
many people cash out investments without issue
trader is a respectable profession to most despite what biz says
i wouldn't mention crypto to my bank tho
First you have to track all your transactions from the moment you insert any money in crypto, along with proof of where did that money come from in the first place (if it's just straight from your bank account that alone is enough). Then if your bags go 1000x and you want to cash out, first you call your bank and literally tell them you want to cash out your crypto profit and that you'll give them all your clean transaction records which you will then pay taxes for. Then the bank janny knows you're clean and not some le evil dark web terrorist and you can freely cash out however much you want to you bank account.
After that you do with that money whatever you want, in most cases if it's a large amount of money you'd want to diversify to protect your capital, which means buying various long term assets like real estate land etc, ideally keeping a chunk in crypto still. Then when the tax day comes in April 2023 you calculate how much tax you owe on that profit, ideally pay some tax accountant with crypto experience to double check your calculations, then you pay the tax man again attaching all the crypto and bank transactions and that's it you're a free man who can sleep soundly congratulations.
>government immediately thinking you are a drug dealer
What sort of shithole do you live in? Here crypto gains are taxed as individual income, it's entirely legal. They even allow you to subtract initial investment from the overall sum you cash out/calculate the tax from, as long as you show these initial bank transactions. Just declare that you bought an asset with X money and sold for Y.
I wouldn't cash out a ton of money without calling the bank and asking if they'd be okay with it - to avoid them suspecting illegal activity and suspending the money. I'd even look at opening an account in a new bank for this.
Don't do that, get some crypto and live the rest of your life stress free. If you don't have the funds, consider participating in airdrops or the CNDLchaindotcom bounty program.
You from usa ? here you have to pay 26% capital gains tax if your profits exceed 0$ + you have to pay 0.1% tax on net worth + 0.1% tax on each position for daytrading...
>keep them poor
I'll just have to pay taxes on it. What else am I going to do? I'll probably walk into a bank and get with a personal teller to walk me through the steps of cashing out. I already have a bank account but I'll probably set up a new one if it ever came to that point. Just for fun I'm going to walk in smelling like shit, looking like a homeless person.
If you make over 40k or 80k as a family. bankrate.com
I just told you how to avoid capital gains in my first post. Also, trade on a DEX with a VPN. Stop using CEXs. Mining and staking rewards are considered income and not capital gains ;) There is no tax on crypto loans i.e. AAVE and Compound derived USDC has 0 tax.
>Say if you own a coin that went to the moon, what would your exit plan be?
To sell and transfer from my crypto brokerage account to my bank account.
>How do you pay taxes without the government immediately thinking you are a drug dealer
The IRS doesn't care how you got it as long as you pay taxes.
There's literally a tax form for literal drug money
> Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.
>Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity.
>irs.gov
>Even when you do have the USD, where do you put it?
The bank as an intermediary to my other brokerage accounts so that I can invest in more conservative long term plays like index funds that track the S&P 500.
>If you try to drop a million dollar payment into your bank what are they going to do?
Nothing. At most they may ask you where it came from and you just say a brokerage account.
Get an accountant who is knowledgeable about crypto. Don't be a miser pay whatever he demands if you're certain he'll do a good job. If not, search for another one. This is important, don't try to save money doing it all by yourself following the advice of some schizo larpers here, he'll tell you what to do to make everything legal. Make legal a good chunk of your gains if you don't want to pay taxes on all of your crypto. Tether the rest and withdraw it little by little, in a monthly fashion.
You're overthinking it. You're talking about a traceable and immutable digital financial record. There's no point lying about what happened, because the evidence is public.
This
Also this kek there is literally a form for illegal income. America is the great Satan, mystery Babylon, and we are the whore
The problem I see is tracking all your crypto transactions over years if you did lots of trades on multiple exchanges.
Even in case your initial was from a bank account straight to Coinbase or Binance, unless you're a normie or boomer who never moved your crypto outside of a single CEX, there will be difficulties. Trades on exchanges that don't even exist anymore, DEX trades, airdrops, token swaps, staked tokens, I guess it will be though and in a few cases impossible to track all this shit, unless you autistically keep track of everything since the beginning. It's something that worries me too.
If you've exercised good opsec every step of the way and were not talking about genuinely significant amounts of money the trail could probably be obfuscated to a point of plausible deniability or otherwise be unworthy of the effort, but you'll then be in a position of having to launder. This sort of shit is beyond most people honestly and you aren't cut out for it I suggest don't fuck around or you'll probably find out
this past tax season no accountant would touch crypto.
You misunderstood, user. I don't want to launder, it's the opposite, I'll want to declare my profits and pay the proper taxes on everything, however I'll need to prove that I obtained all that profit legally so my bank and my country's equivalent of the IRS won't fuck me over. Like I said in my previous post,
>Trades on exchanges that don't even exist anymore, DEX trades, airdrops, token swaps, staked tokens
Since I did all that shit over many years I don't think it's even possible to do a proper trail of all my trades so I won't get fined or worse
I would just pay my taxes and be done with it.
I could skip em, considering here in Hueland would be easy to find a corrupt taxman, but I don't wanna deal with those kinda people desu.
I pay taxes like a normal one. Declare that you're a cryptoe trader.