Resell from KYC

[DisabledAF]

I would like to inform about purchasing on a KYC exchange.
My friend will buy $700 worth of Bitcoin on his account at NEXO/Binance, and he will send what he buys to MY hardware wallet Trezor.
He will have tax obligations and unnecessarily worries about how I will handle those specific sats he sends me?
And I am completely unconcerned because it doesn't matter to me where those sats come from? For me, it's the same situation as if I bought them peer to peer on the street for cash?

What does it mean for me?
What does it mean for my friend?

Edited: Thank you for answers, now I know its better to not complicate it and taking from friend cash and then buy P2P…
Moderator can lock/delete post 

[Plaguedeath]

What's actually the purpose for?

Do you want to buy Bitcoin without submitting KYC? just use no KYC P2P or DEX, no need to ask your friend to buy behalf from him.

On the other hand, I don't understand why your friend need to hand his coins to you because he has no way to access his coins anymore, what he can is ask or force you to move the coins.

When it comes to tax, your friend will not have tax obligations since he didn't sell his coins, capital gains tax occur after you exchange coins to other assets e.g. coins, fiat etc.

[DisabledAF]

What's actually the purpose for?

Do you want to buy Bitcoin without submitting KYC? just use no KYC P2P or DEX, no need to ask your friend to buy behalf from him.

On the other hand, I don't understand why your friend need to hand his coins to you because he has no way to access his coins anymore, what he can is ask or force you to move the coins.

When it comes to tax, your friend will not have tax obligations since he didn't sell his coins, capital gains tax occur after you exchange coins to other assets e.g. coins, fiat etc.

The reason is that he wants to return the money to me this way. But it's probably better if he returns cash to me, and I buy peer-to-peer for cash in the traditional way. Because I don't want him to incur tax obligations after I sell those sats in the future.

[Plaguedeath]

The reason is that he wants to return the money to me this way. But it's probably better if he returns cash to me, and I buy peer-to-peer for cash in the traditional way. Because I don't want him to incur tax obligations after I sell those sats in the future.

I see.

This will depend on tax laws in your country, if gift worth of $700 is taxed, your friend need to bear the tax. As long as your friend declare that he give that $700 in Bitcoin as a gift, he don't have to worry.

But yeah returns cash is more private and convenient.

[Fiatless]

What does it mean for me?
What does it mean for my friend?

Thank you for answer

Your friend wants to buy Bitcoin from an exchange and will transfer the funds to your hardware wallet. Now you want him to give you the $700 cash so that you can buy through physical P2P because you want him to avoid tax. It will depend on the tax and crypto laws of your country if the move is legal or illegal. However, it is commendable to look for means to avoid taxes as much as you are not breaking any law. You can save a good amount by avoiding taxes.  If your your friend can give you cash and you have a genuine means of buying Bitcoin you can just avoid these exchanges. Buying through traditional P2P means also promotes privacy since there will be no KYC. The bottom line of your situation is that both you and your friend will avoid taxes and save money.

[crwth]

You do know it's not about you but the government looking on to him. Depending on the legal considerations per country, it's different and there are laws that has something to do with gifts and taxes. If there is, maybe that's the concern of your friend.

[Reatim]

What's actually the purpose for?

Do you want to buy Bitcoin without submitting KYC? just use no KYC P2P or DEX, no need to ask your friend to buy behalf from him.

On the other hand, I don't understand why your friend need to hand his coins to you because he has no way to access his coins anymore, what he can is ask or force you to move the coins.

When it comes to tax, your friend will not have tax obligations since he didn't sell his coins, capital gains tax occur after you exchange coins to other assets e.g. coins, fiat etc.

The reason is that he wants to return the money to me this way. But it's probably better if he returns cash to me, and I buy peer-to-peer for cash in the traditional way. Because I don't want him to incur tax obligations after I sell those sats in the future.

I don't know where you guys are from so I also don't know the jurisdiction in your country over cryptocurrency. The regulations about crypto in your country might not be the same as the ones in mine but to be safe I suggest that you guys don't complicate things and just let him give you the cash. But if he doesn't mind all the tax then just let him send it to you.

[thecodebear]

So he is giving you that money? Then he has no tax obligations and you do have tax obligations. Once the money is yours it is yours! You inherit the cost basis from his buy ($700), and when you sell it you pay taxes (sale proceeds minus cost basis from his buy) assuming you sell it for profit.

So it is the opposite of what you think. He will have no tax obligations, you have the tax obligations.


That is how things normally work when it comes to taxes. For example if you are in the US or many other countries. But if you are in some country with bizarre tax rules it could be different I suppose. But the normal way govts implement taxes, you will have the tax responsibility, not him.

[Mr. Magkaisa]

I would like to inform about purchasing on a KYC exchange.
My friend will buy $700 worth of Bitcoin on his account at NEXO/Binance, and he will send what he buys to MY hardware wallet Trezor.
He will have tax obligations and unnecessarily worries about how I will handle those specific sats he sends me?
And I am completely unconcerned because it doesn't matter to me where those sats come from? For me, it's the same situation as if I bought them peer to peer on the street for cash?

What does it mean for me?
What does it mean for my friend?

Thank you for answer

      
          -   What are you avoiding, Kyc? I don't seem to see anything about submitting KYC to an exchange as long as it's like Binance or some other platform, in my opinion. Then, if you received what he sent worth of satoshi in your wallet in Trezor, what are you worried about?

Are you the one submitting the KYC or the one sending it? I'm just not sure if it's the right understanding that I'm saying in your post that this op ah, please correct me if it's wrong.

[NotATether]

He will have tax obligations and unnecessarily worries about how I will handle those specific sats he sends me?

If he is a US person, then crypto taxes only apply when there is a capital gain (or loss).

Since he is immediately sending the bitcoins to you, it can be recorded as an immediate sale in his tax return (I think??) so there should be no capital gains to be dealing with as long as the sale is done immediately after the purchase.

[sheenshane]

What does it mean for me?
What does it mean for my friend?

Let me add something before you lock this thread as I suggested below.
Yes, it's nothing for you and if you're concerned about your friend it's nothing from him, both of you should have nothing to worry about.

It's as simple as that, it might have a tax obligation related to their purchase, but once your friend transfers the Bitcoin to your wallet, it's your friend's responsibility ends.  However, keep in mind that it will still be aware of any tax implications related to selling or gifting cryptocurrency in their jurisdiction, as mentioned above, each country has its jurisdiction to follow in taxing crypto.

Moderator can lock/delete post 

You can execute it on your own, scroll down, and find the "lock topic" button below.

[Aanuoluwatofunmi]

I would like to inform about purchasing on a KYC exchange.
My friend will buy $700 worth of Bitcoin on his account at NEXO/Binance, and he will send what he buys to MY hardware wallet Trezor.
He will have tax obligations and unnecessarily worries about how I will handle those specific sats he sends me?
And I am completely unconcerned because it doesn't matter to me where those sats come from? For me, it's the same situation as if I bought them peer to peer on the street for cash?

What does it mean for me?
What does it mean for my friend?

Why is he sending to you, why not to his own non custodial wallet, secondly, there is no how you can be able to get determine for whether he was taxed a particular amount or not, since he is sending from a centralized exchange, another thing is that if you both understand the theory behind the use of p2p, then you may not have to misunderstand the idea under this transaction that is happening, you buy base on what you're able to afford with, that means, both the buyer and the seller are making business at the affordable rate they could all benefitted from.

[harapan]

What's actually the purpose for?

Do you want to buy Bitcoin without submitting KYC? just use no KYC P2P or DEX, no need to ask your friend to buy behalf from him.

On the other hand, I don't understand why your friend need to hand his coins to you because he has no way to access his coins anymore, what he can is ask or force you to move the coins.

When it comes to tax, your friend will not have tax obligations since he didn't sell his coins, capital gains tax occur after you exchange coins to other assets e.g. coins, fiat etc.

The reason is that he wants to return the money to me this way. But it's probably better if he returns cash to me, and I buy peer-to-peer for cash in the traditional way. Because I don't want him to incur tax obligations after I sell those sats in the future.

I don't know where you guys are from so I also don't know the jurisdiction in your country over cryptocurrency. The regulations about crypto in your country might not be the same as the ones in mine but to be safe I suggest that you guys don't complicate things and just let him give you the cash. But if he doesn't mind all the tax then just let him send it to you.

Since the obligations and regulations of the countries differs,is it also advisable to partake in the investment process and make financial recommendations as well.
Does he really need to comply to the standards,rules and regulations.Maybe its necessary just so they can monitor suspicious and illegal activities.