Quote from: Don Pedro Dinero on May 26, 2024, 05:01:38 AM

Quote from: woez on May 26, 2024, 03:49:04 AM

Quote from: Pandorak on May 25, 2024, 11:34:13 PM

Just move your bitcoins to a CEX that is regulated & legal in your country and convert them into fiat from there. CEXs that are affiliated with the government will never have problems with taxation, because every transaction you make is counted in tax, that's what happens in my country.

The right solution. Instead of having to use strategies a and b, we just have to be busy and spend money over and over again, where the final goal is how BTC can be converted into fiat and entered into our personal accounts without many questions from any party.

In another thread the OP talks about having more than $20,000 in bitcoin. If it's around that amount, he shouldn't have much of a problem, although it depends on where he is tax resident. Normally, if he can't prove the price at which he bought it, he would be charged 0 cost, and taxed on the total. But if it was more money or considerably more, he would have to be careful because he could be accused of tax evasion. It is best to consult a lawyer.

I made a researched on this before and if I'm not mistaken, we can only get taxed in our crypto hodlings if we are profiting. So, simply having or buying the BTC first is exempted to it. There is also a threshold/minimum amount, for us to get charged by a tax and I think it starts at $3k. I'm not only sure if the same rate applies in other countries.

If we can't prove the price where we bought our coins, then we are supposed get charged and it's not a zero sum but it can be higher than our recommended tax pay amount. This is why it's important to track everything and prepare them, just in case we are required by our law to pay a tax. Consulting a lawyer about this matter as you said, is much better as they have more experience and knowledge when it comes to this things.