Best non-taxable way to cash in your BTC?

[edd]

Naturally, evading tax is evading tax, and bitcoin itself really has nothing to do with that, with the exception of helping to circumvent Customs controls on the transfer of value.

This.

Once you begin making purchases that don't coincide with the income you're reporting, the IRS will eventually start asking questions. Your question should really be "What kind of income can I claim that isn't taxable?" and then try to make it seem you earned your bitcoins that way.

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[bernard75]

Once you begin making purchases that don't coincide with the income you're reporting, the IRS will eventually start asking questions. Your question should really be "What kind of income can I claim that isn't taxable?" and then try to make it seem you earned your bitcoins that way.

Exactly, there are many ways to legally "evade" taxes.
Just look at large cooperations, some of them mange to pay less than 1%.

[nobbynobbynoob]

Once you begin making purchases that don't coincide with the income you're reporting, the IRS will eventually start asking questions. Your question should really be "What kind of income can I claim that isn't taxable?" and then try to make it seem you earned your bitcoins that way.

Exactly, there are many ways to legally "evade" taxes.
Just look at large cooperations, some of them mange to pay less than 1%.

When it's legal, the technical parlance is "tax avoidance". "Tax evasion" is a non-payment of taxes the State considers illegal, and it may go after suspected "violators".

[dominicwin]

Hire an attorney, trust me. If you have something significant you want to cash out they will be able to light up your world with all sorts of options to reduce tax burdens, especially if you have never been in a circumstance of large personal financial gain

[WishIStartedSooner]

Pay tax and enjoy your bitcoins legally!

[zvs]

The best way to financially benefit from your bitcoins is to:

1) Leave the US with your bitcoins.
2) Live in some other country that has less onerous taxation.
3) Enjoy a lower cost of living and absence of an oppressive police state.

Not many countries out there that'd tax income on capital gains less than the US

well, countries in western europe, anyway

[bernard75]

Move to Germany or at least open a company for 1€ there and pay 0 taxes.

[bitcool]

Move to Germany or at least open a company for 1€ there and pay 0 taxes.

I thought you don't need to have a company in Germany to enjoy the tax free BTC gains? 

[bernard75]

You dont, but if you dont live in Germany, you dont have to move there, its enough to open a company.

[gerXhonza]

My friend suggested buying Gold on the site which sells Gold for BTC.  

Then once you have that physical item in hand, you can sell the gold for cash in hand.  Then I guess you need to keep the cash under your mattress?

Buying Gold solves nothing when you selling it for cash anyway. It is the same as selling bitcoins for cash on Localbitcoins.

Best is spending the BTC slowly, buying products/services for bitcoins directly.

[neutralist]

Pay your capital gains tax, and sleep well knowing that you won't go to jail.  And be glad it's just capital gains, and not self-employment income.

Thats funny!  I have self employment tax that I have to pay as well  On top of my taxes for my business income.  Punishment for being an entrepreneur and small business owner in the USA.  

You should have registered as a C-Corp instead of a S-corp,LLC or sole proprietorship.

Anyhoo in the USA only the decedent of rats a.k.a. Zionist are allowed to be rich.

[enquirer]

Pay your capital gains tax, and sleep well knowing that you won't go to jail.  And be glad it's just capital gains, and not self-employment income.

There is no way to prove it's capital gains. Will Bitcoin Foundation send you a 1099? In absence of proof, you will pay highest tax rate applicable to you.

[ripcurldog]

Wow, I bet you never imagined that come 2017 (just four years after your post), bitcoin would be worth $18,000.  And you were dreaming of $1k.  Man, I hope you kept all of those bitcoin you were talking about.  If so, you are probably living on your own private island by now, paying taxes to yourself!

[ember.suc]

If you think investing in bitcoin or a similar “crypto-currency” may be a good method for hiding income from the tax man, you’d better think again.