Community post
BTC and US Government
I was thinking of this after watching @dollarvigilante and here are some of my thoughts on the future of BTC and Urinal Sam.
I believe the government will treat BTC like any exchanged commodity or stock. They won't/can't tax you while it is being exchanged and the price is fluctuating (after all thats exactly what stocks, commodities, and forex are doing). And while the BTC is "trading" you have not fully exchanged goods for a profit/loss. But the second you turn that to liquidable cash assets, they will tax you. Of course bc they want their significant share.
So my theory is, if you want to "clean" your BTC in exchange for cold hard untraced cash, buy silver or gold online or dealer who accepts BTC (easy to find in NYC if you live here). You have your metals in hand, and then you just turn it back over for cash. I could be wrong, but this seems like a work around as you're exchanging an exchange for a product the government has no idea how much you're purchasing or how much you own.
Replies (7)
Not a bad idea for those near major cities. Less applicable to those in say, gnome Alaska, but still good for the majority of the crypto fans
I think its still doable outside of urban areas, it would just be all online. the major metals distributers accept BTC for purchase. So about a week to recieve delivery, then you have to lock in a price and mail it back to sell bc they also buy.
The only pit fall is the premium you pay for purchase and for rural folk, the shipping. But overall, if youre trading btc and making a lot of money on it, then who cares if you have to pay about a dollar premium per ounce if you're dodging the IRS significant percentage of tax.
Pitfall 2, if you sell over I believe 10 grand worth they may have you fill out that IRS form.
When you start buying precious metals by mail the tax men start looking at you harder.
Ah I didn't know. I thought you had to make very significant purchases to start having eyes on you.
Not as far as the USA is concerned. It's getting a little scary over here bureaucracy-wise.
So I guess the question is...I have an idea my method would work if youre around dealers who accept bitcoin. So, how does someone who doesn't have access to a dealer who accepts BTC utilize such a strategy?