Post
Topic
Board Legal
Re: Tax issues when I bought a BTC from United States, and sold to another countries
by
thomasjonestaxman
on 10/01/2018, 22:58:00 UTC
As an Enrolled Agent working for a CPA firm, here's a couple different things to keep in mind:

1) If at any time you hold financial assets (cash, investments, securities) with a value greater than $10,000 at any time during the year then you're required to file a FBAR by April 15 of the following year.  We normally prepare this with the tax return, since they kind of go hand-in-hand and have the same due date.  If the amount is greater than $75,000 at any time or greater than $50,000 at the end of the year, you also need to include Form 8938.  If any non-US person gifts you money, crypto, an investment, or anything with a value of greater than $100,000 you need to file Form 3520.  I could go on, but from what you shared there's definitely a foreign reporting requirement.  Just know that accidentally not filing a FBAR has huge penalties.  Intentionally not filing a FBAR is criminal and can lead to jail time.  So definitely not something to be taken lightly.

2) As a US citizen, you have to report your worldwide income, including what you make in Korea and what you earn or gain in coin.  That said, there's a number of provisions in place to limit or avoid being double-taxed by both Korea and the US, including the Foreign Earned Income Exclusion, Foreign Tax Credit, Foreign Housing Exclusion, and specific tax treaty provisions.  So make sure you work with a CPA or Enrolled Agent with experience in foreign reporting and cryptocurrency to properly report your income.

3) Proactive tax planning can help ensure you are taking advantage of the best strategy to minimize your taxes.  There's so many tax planning strategies from entities, retirement plans, to cost basis allocation, and time spent outside the US to make sure you're minimizing what you're supposed to pay in tax.