Hello.I had two questions I have not been able to get clarification on.
- When someone sends you crypto on your receive address to your exchange, how does the exchange know if these funds are to be taxed or not when they prepare the forums at the end of the year? I can understand if you bought assets and they gained value and then you transferred them to your bank, the capital gains would be taxed. But if you received funds from family, or donations on your receive address, how does the exchange, or IRS know if they are taxable or not as there are no notes with these transfers?
- My second question was:I have a second account at Binance. I had 100 coins I was trying to move over to Coinbase, but got an error saying that you need 400 of these coins to be-able to move them. A Binance support rep on the Redit forums said, "you might be able to email support, but usually the rules are fixed." If the value of the assets increased to the point where the buyer can't afford to buy 300 more, then the coins are stuck on the exchange according to what the support guy said. My question is: Where do I look to find out what the minimal supply must be to move the coins? and does this also apply to moving them to my bank account if I just wanted my money back? I was not made aware of this when I first bought them 3 years ago. Maybe if I had dug through dozens of terms & limits pages I would have found something on the rule, but nothing was made obvious up front. Now I'm kind of afraid to buy anything on their site.
When receiving crypto there is no tax. To answer the second part of your question, you could sell them and transfer the money to your bank account.