Quote from: DdmrDdmr on April 10, 2019, 03:51:52 PM

Quote from: smyslov on April 10, 2019, 03:13:08 PM

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Often, the honesty side to things springs from need. Until you really need to convert your crypto to FIAT, you can get away being under the radar (for now). Its when one wants/needs to convert to FIAT that you need to bear in mind all the legal aspects it entails, alongside with knowing how to justify it properly in case of an inspection.

In Spain we are now in the season where we prepare our Statement of Income over 2018s overall earnings. This year it seems, 14.700 Spanish residents are viewing a pop-up whist preparing the Statement of Income, reminding them that the benefits made from crypto operations are subject to taxation. The message is not random or a general reminder to all, but specifically to a set of residents of which the tax office has information about in relation to their crypto operations.

How the tax office knows exactly is unknown, but likely, they have targeted all bank accounts that receive FIAT transfers from known exchanges, being the Spanish banks the ones who provide this information to the tax office. One could try to go through alternatives such as Localbitcoins, but many consider it risky.

Most likely they got the memo from entering details on KYC exchanges. So assuming they have the trading history they should be ok.. but there's some horror stories involving big % increases, followed by big sell-offs (as in 2017 peak and crash), then the guy losing the keys and owing taxes on the increased %. It depends on the country but something like this happened in the US I think.

In any case what this thread is about is how does one go about selling sig campaign earnings after years of hodling and probably losing a partial amount of information related to of the origin of funds (there's no way everyone has kept %100 of information... most sites of back then don't even exist today and I really doubt everyone took screenshots and if said screenshots would be enough proof at all). Due all the doubts surrounding this subject most have decided to just keep hodling, but eventually one will want to diversify and sell a % as BTC goes to new highs so we should know what to do before we need to do it.