Oddbean new post about login | logout How do you opt out of the capital gains tax when selling Bitcoin? Even using a bill (credit card) payment service I'd imagine might catch up one day. Bull Bitcoin in Canada as example I'm sure reports client transactions even if bill payment style. I'm not huge fan of using robosats style services.
You opt out by not reporting the sale of your asset held for 1+ year on next year's filing, and you do it in a private transaction where KYC does not apply, whatever that means to you.
The private transaction bit though... You then either live off the cash or have a traceable transaction going in to your bank account. Enough of those would raise questions. I guess cash can work, but only to a point. Recent example, new tires on a truck for $1500. Not very many businesses are going to accept cash for that. I'm not at a point where I need or want to sell BTC, but for sure someday I will.
I find it hard to believe a service industry sales point wouldn't accept cash money currency for said rendered services. Find a different bank who doesn't care. In the U.S. that's typically a credit union. Elsewhere, I have no idea. Report your goddamn sales if in the U.S. The IRS will eventually find you if your shit is KYC'ed. Don't go to jail over this very preventable occurrence.
You can't avoid capital gains without breaking the law or moving country. Not an option for most. Your last line is correct and contradicts the former.
You're missing my main question. I'm not looking to do anything sketchy like private sales or cash deals. I know about non KYC Bitcoin and markets with peer to peer meet ups. Not interested. If I needed to sell now I'd go through an exchange and report the transaction. I'm looking for legitimate ways to sell Bitcoin in the future. Maybe a tax loophole. Does anybody run it through a corporation somehow? Friend or family overseas and then back in dollars? 🤷🤷 People avoid tax in fiat world all the time. Surely someone smarter than me has figured out how to do it legally with Bitcoin self custody. Or not. Maybe one day.
>I'm looking for legitimate ways to sell Bitcoin in the future. No crystal balls here. Whatever the method is, is exactly what that is to you, in your region. >Maybe a tax loophole. Public Ledger. >Does anybody run it through a corporation somehow? Public Ledger. >Friend or family overseas and then back in dollars? 🤷🤷 Public Ledger. >People avoid tax in fiat world all the time. Public Ledger. >Surely someone smarter than me has figured out how to do it legally with Bitcoin self custody. Public Ledger. >Or not. Public Ledger. >Maybe one day. Public Ledger...? An Atomic Swap into a more private coin is what you're looking for as a solution today,bthen you can transact accordingly. Or just wait for BTC to offer a similar feature of privacy, when it does, probably? No other options here, friend. Sell and report, at least for now!
Until bitcoin is accepted as a currency it is worse than fiat or stocks for privacy and tax purposes.