Father's friend was supposed to send me €10k to trade bitcoin. He bailed out last minute saying that by US law he cannot invest in bitcoin.
He was supposed to send me the money to my UK bank and then I would have bought BTC on localbitcoins and traded derivatives on Bitmex. So he would have done just a regular bank transfer, nothing official.
He is not American but has US passport and he works in Germany. His tax base is the US.
Does he actually need to report anything for tax purposes? He would send me euros and I would unofficially trade, there's no contract between us or
anything.
I’m no tax expert and the US tax rules are not clear to me, but my understanding is that all you need to do for US taxes is report your gains and losses on cryptocurrencies as if they were a commodity like gold. So I don’t think there is anything to report until you cash out.
I don’t know how this affects your friend if he is not American but buys in America. But if you’re saying he is sending the money to you to buy in a UK bank, it seems to me that it would be outside of the US tax law and would fall under UK tax laws since the transaction would be in the UK.
