Quote from: Anonohmon on July 08, 2022, 12:27:28 AM

Quote from: Poker Player on July 06, 2022, 07:27:01 AM

Quote from: Anonohmon on July 05, 2022, 09:40:51 PM

Thanks, yeah how about like 1 entire bitcoin? Lets say someone bought bitcoin every couple weeks over time and has 1 bitcoin. Bought via exchange, and ATMs that don't require ID and just converted to XMR, sent to another address and converted out to bitcoin. So there aren't many records.

And lets say the individual is not going to spend or sell the bitcoin until it reaches 1 million dollars... which could be in the far far future, 20 30 maybe 40 or 50 years from now. Something that makes it possible that records held by the ATM and exchanges could be gone if those exchanges go out of business.

And, if someone had 10 anonymous bitcoins.... I'm thinking they should wait till it goes up past 70k again and move to a more tax forgiving country, or a country that will not be afraid to tell the US to go F-off... And honestly there are few nations that will do that, maybe Russia? Although being prepared to follow all the laws of this new country you have moved to because you've burned your bridges.

What you are asking has been discussed in several threads, for example this one:

https://bitcointalk.org/index.php?topic=5355749.0

The answer to your question depends a lot on where you live, but to summarize.

Showing up with a Bitcoin when it's worth $1M before tax authorites is the same as suddenly showing up with $1M in dollars that you can't justify.

In the best case scenario you will be charged a tax, which could be capital gains tax with 0 purchase cost in the case of Bitcoin and I am not so sure in the case of cash. It could be the same or it could be income tax.

But I am inclined to think that you would be investigated for tax evasion. Think Al Capone was put in jail for tax evasion: they couldn't prove that he murdered, extorted money, etc. The only thing they could prove was that he had more money than he could legally justify.

So, $1M seems to me a considerable amount of money to open such an investigation. If you have $1k in Bitcoin that you can't justify you're not going to have problems but when the amount gets big you risk ending up in jail.

That's crazy they wont take "I bought bitcoin back when it was around 20k and held onto it for years" approach! What are the probably many other people who still have bitcoin from 2013 and so on when it was only a few thousand but they bought from one of the plentiful non KYC exchanges?

So is it if you just show up with 1 mil out of no where? Or is it so long as they can see that the bitcoin has sat in a wallet for a long time but is just not connected to a paper trail, would that matter?

Either way, something tells me the totalitarian states of America is not the place to be when you want to cash out.

It's going to be the same in any developed mainstream country. How do you think authorities will react when you show up with 1 million worth of BTC?
I've seen some people claim if you just claim 0 cost purchase and pay your taxes they will leave you alone but with I think they are lying and just hoping that's how it works.
In practice you are gambling that they start an investigation and once it starts the consequences are unpredictable. You may get a slap in the wrist or you may end up in big trouble. The question is, is it worth doing this gamble?

And as far as exchanging it for cash, this is useless. 1) You cannot do anything with cash other than buy small purchases, 2) They will eventually ban cash, so you will have nothing

As far as I can tell, you are trapped in BTC. Since it's too much too cash out, and it's too little to start some sort of tax haven structure (and there's still risk anyway)