Post
Topic
Board Exchanges
Re: How do you without id/passport verification convert crypto to fiat?
by
bug.lady
on 25/01/2018, 13:29:20 UTC
well if you read my post carefully you could see I suggest you can sell your gold to FIAT

anyway, in some countries this method, while more troublesome, I agree, allows you legally not to pay capital gain taxes, because buying physical goin is tax free and selling you gold to fiat involves no capital gain tax (in some countries)

Do you have any source for this information?  As i understand it, selling crypto to gold is considered a taxable event and CGT would become liable.  Its possible that if you do this outside your home country then import the gold, it may be a legal avoidance method.

well it depends what your home country is. I was specifically thinking about Europe. If you live in Europe there is no need to buy it outside and import.

Buying gold in Europe is not a taxable event even if you do it with crypto. Gold is VAT free so you don't pay it. Then, selling gold (in some countries 6 months are required to pass from the purchase) is also exempt from capital gain tax, even if you sell it higher than you bought it.

What I am presenting in my post is a whole picture based on multiple news sources, some not in English. I can't list the sources though. But it shouldn't be hard to google the particular news pieces.
The selling of your crypto currency probably is.  Thats what i'm seeking some information on. As it stands, all the information i've found is that a disposal of any asset is considered a taxable event, even inter-crypto (so profits held on exchange should be declared and CGT paid).  If the asset increased in value, it is liable to CGT.  

OK you probably refer to the law in US. I think I have read in some threads in this forum that they consider even crypto2crypto exchange a taxable event. Well, in this case you are probably right and my scheme is not something that would work for you.

On the other hand, traveling to and fro some other country, doing some smallish exchanges just to stay under radar probably will involve similar money in overhead costs and much more trouble involved than just paying legal tax. Not to speak of the risk to be detected

Other than that, I can't help you in regard with US law. I am not a citizen.