How to declare a donation of tokens ?

[expert4knowledge]

Someone gave me a good amount of tokens because i gave him good advices but how will I declare this to my country the day i cash out ? Will they try to be interested in where this money comes from exactly ? Or will they just accept that someone send tokens to me just like that ?

The laws about bitcoin taxes are blurry, but the law about tokens are even more blurry

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[MCVXYZ]

For this you  need to understand how the Financial Monitoring Service works in your country.Everything depends on jurisdiction in this situation.If you have a good amount (for example in my country 30k$ Equivalent) monitoring service will be interested in this case.I am not sure and I don't know how it works in your country but I would declare it as a service contract,because you gave consultation for this tokens.
So the best solution is to contact relevant person who knows norms about this situation or search it on your country's official legislative website,you may find a special law wich has legal effect on it.I would like to mention that this is a very complex case and it would be better to hire  relevant person.

[chaoscoinz]

Disclaimer

I myself, do not represent any attorney,  or financial advisor. I'm just here giving my 2 cents on the matter.

Depending on what country, and jurisdiction you live in, the laws will vary. Here within the U.S,
You inherit the cost basis of the amount recieved, at the time of reception.

(Someone feel free to correct me if I'm wrong)

Example:
   Johnny decides to give Sally 100 Bitcoins. Each Bitcoin is worth $1 at the current time sally received the 100 coins. 100 Bitcoins x $1 per coin = $100 worth of coins.
  In the event that the price rises from $1 to $2, and Sally decides to cash out, 100 Bitcoins x $2 per coin = $200 worth of coins.
   The cost basis is $1 per coin, so if Sally sells 100 Bitcoins x $2 per coin, her total = $200 and her capital gain from the sale is $100. So Sally is liable to report her gain/loss come tax filing time.

Short-term capital gains tax is any gain realized within the time frame under a year from realization.

Long-term capital gains tax is any gain realizsd within the time frame over a year from realization.

In the U.S, I think you are personally allowed to receive up to around $14,000.00 in gifts before you trigger a tax liability, and are expected to report anything over as regular income.
  
  Please be sure to try and keep detailed logs of each transaction you make involving crypto-coins throught the year. I myself, need to play catch up, as I'm a little unorganized. Before you decide to cash out, make sure your come correct, in a neat and timely manner.  

Here is a short article: https://www.investopedia.com/university/definitive-bitcoin-tax-guide-dont-let-irs-snow-you/definitive-bitcoin-tax-guide-chapter-2-bitcoin-commerce-taxable-events-c-gifts-and-tips.asp

[Paditani]

For this you will need to understand how the Financial Monitoring Service works in your country.Everything depends on jurisdiction in this situation.If you have a good amount (for example in my country 30k$ Equivalent) monitoring service will be interested in this case.I am not sure and I don't know how it works in your country but I would declare it as a service agreement,because you gave consultation for this tokens.
So the best solution is to contact relevant person who knows norms about this situation or search it on your country's official legislative website,you may find a special law wich has legal effect on it.I would like to mention that this is a very complex case and it would be better to hire  relevant person.

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[Zackgeno96]

If the amount is relatively low then there would not be any problem and on there hand, if it is a big amount then you might have to give explanation to the authorities. I would suggest you to understand the local law, do some inquiry /research regarding the your country's law for donations and cryptocurrencies.

[dunfida]

Someone gave me a good amount of tokens because i gave him good advices but how will I declare this to my country the day i cash out ? Will they try to be interested in where this money comes from exactly ? Or will they just accept that someone send tokens to me just like that ?

The laws about bitcoin taxes are blurry, but the law about tokens are even more blurry

If you do receive hundreds of thousands on the current value of bitcoin then cashing it out would be troublesome if banks on your country is strict when it comes to money laundering or some laws related to it but if those amounts of bitcoin being given on just small amounts then you should not really bother because it is just only few that theres nothing to worry if you cash em out.

[jossiel]

how will I declare this to my country the day i cash out ?

1. In what country you are living?

2. If there's no regulation about cryptocurrency on your country, you can declare it as it is - a cryptocurrency - a digital money that has real fiat value.

Will they try to be interested in where this money comes from exactly ?

If you will cash it out through bank channels and then the amount is high then the bank might be interested and will question you but if that will be sort of remittance, I don't think they will be interested to your money.

Or will they just accept that someone send tokens to me just like that ?

You need to research about your countries status about crypto.

The laws about bitcoin taxes are blurry, but the law about tokens are even more blurry

It still depends on where you live.

[dokie987]

It depends on the amount of your bitcoin, but i guess they will never question you but possible they will just require you some documents to claim if the amount of your bitcoin is very big.

[stantpro]

Rather than follow the laws governing the jurisdiction, is it not better one cashes
out in smaller amounts allowed by the country without any tax burden?If I made $10,000
and my country allows me to cash out  $1000 per time without any burden on it, then I cash out ten
times at different times.

[chaoscoinz]

Rather than follow the laws governing the jurisdiction, is it not better one cashes
out in smaller amounts allowed by the country without any tax burden?If I made $10,000
and my country allows me to cash out  $1000 per time without any burden on it, then I cash out ten
times at different times.

In the united states, this is called structuring and could really bring heavy penalties upon yourself.
It's best not to play chicken with the federal government. You should consult a financial advisor in your local jurisdiction and also an attorney, just to be sure of your countries laws (if your not in the U.S).
   In most cases it is better to just give to Caesar what belongs to Caesar. Crypto coins have no set parameters that are set in stone when it comes to legality,  and it's best to follow coindesk and other crypto coin news outlets for up to date regulation guidance.  Most countries wait for the U.S to make a heavy decision first, then they make adjustments and follow suit.

[carlfebz2]

Rather than follow the laws governing the jurisdiction, is it not better one cashes
out in smaller amounts allowed by the country without any tax burden?If I made $10,000
and my country allows me to cash out  $1000 per time without any burden on it, then I cash out ten
times at different times.

I would go for the same option towards this which we can really follow minimal withdrawn amounts which wont really make some noise if you are really concern on taxation matters. Just cash out it on little by little then you wont really face the problem on which op is worrying about. Theres no such declaration of donation of tokens specially if theres still no laws towards it on your country.