Withdrawing Over $10K From CoinBase Into US Bank Account - Legalities?

[WarezWaldo]

If I withdraw more than $10K from Coinbase.com into my US bank account in a single transaction, are there any Legalities/Regulations/Restrictions Ect. that would require me or my bank to report it to any Gov/Financial Agencies?

And if so what kind of info is sent/documented and what type of Regulations ect. would be imposed on my moneys?

[HoboTheClown]

Anything 10k + the banks will report the the Gov.  If you don't want the Gov to report,  withdrawl in installments.  As long as it's 9999, you're 'suppose' to be ok with reporting.  But of course gov wants you to pay taxes so if you want, report your gains.  Meaning pay your taxes on the entire withdrawls from bitcoin gains.

[caminilegroup]

Actually the amount is 5000. Anytime you withdraw over 4999 you are required to report it. That changed a while back.

[joeyjoe]

Personally I would sell for cash.

[Mondy]

Personally I would sell for cash.

Yea same, then you could deposit it anyway

[HoboTheClown]

Personally I would sell for cash.

Yea same, then you could deposit it anyway

Curious, where would you sell it for cash?  I'd be scared to do it locally

[joeyjoe]

Well you kinda have to do it locally unless you feel comfortable with cash in the post!

Localbitcoins.com

Choose a seller with 100% feedback that has done hundreds of transactions. It is as big of a risk of them as it is for you. They have bundles of cash on them, you would have a secure bitcoin wallet on a mobile phone / or possibly call someone at home to do the transaction for you.

If anything went wrong, chances are you could just pose as someone else and arrange another meetup with the person. It really isn't worth it for them to scam you.

People keep saying to do it in a public place, but handing over large amounts of cash in public places could present more problems. People thinking it is a drug deal etc. I would personally go along with a friend or family member.

I done a cash transaction a week ago with a guy that had over 3000 transactions all with 100% feedback. It was very laid back, the guy didn't even care to check the coins had actually be sent. Just have your wits about you.

[Dr Bloggood]

I done a cash transaction a week ago with a guy that had over 3000 transactions all with 100% feedback. It was very laid back, the guy didn't even care to check the coins had actually be sent.

Lol, that's hillarious!

How much money have you made with BC so far, if you don't mind my asking?

[Gator-hex]

It gets reported to the IRS.

If you are not doing anything illegal, don't worry about it, just make sure you are honest when filing your tax return about your Bitcoin income and keep records to prove how you earned the income!

[movellan]

Sorry, but the IRS has you by the short and curlies. Whether the limit is now $10000 or $5000 or whatever, the IRS software now tracks ALL withdrawals over $500 or so. If the system finds you making repeated withdrawals (or deposits) just below the limit, they may use civil forfeiture laws to seize your entire Mt. Gox account and any account you deposited into from the Gox account. See.....

https://www.youtube.com/watch?v=dbHQJzX6ebE

[xchanga.com]

dont dpo over 10k transaction with local bitcoins.
do with any trusted company you know.
if government will know its better. its your money and you have proof for it.
Thanks.

[hoewer4what]

If the system finds you making repeated withdrawals (or deposits) just below the limit, they may use civil forfeiture laws to seize your entire Mt. Gox account and any account you deposited into from the Gox account.

I hope they wait for next year after you fill your tax return

Seriously, all US Mt. Gox bank accounts already seized, if it was so easy they would seize Japans Mt. Gox bank accounts as well

[Gator-hex]

Sorry, but the IRS has you by the short and curlies. Whether the limit is now $10000 or $5000 or whatever, the IRS software now tracks ALL withdrawals over $500 or so. If the system finds you making repeated withdrawals (or deposits) just below the limit, they may use civil forfeiture laws to seize your entire Mt. Gox account and any account you deposited into from the Gox account. See.....
https://www.youtube.com/watch?v=dbHQJzX6ebE

The guy in the video is displaying the symbols of freemasonry. 

What Is Freemasonry? https://www.youtube.com/watch?v=1XhirrSEKjI

[joeyjoe]

I done a cash transaction a week ago with a guy that had over 3000 transactions all with 100% feedback. It was very laid back, the guy didn't even care to check the coins had actually be sent.

Lol, that's hillarious!

How much money have you made with BC so far, if you don't mind my asking?

I'm not into bitcoin to make money. In total since 2011 only around 80btc.

[joeyjoe]

dont dpo over 10k transaction with local bitcoins.
do with any trusted company you know.
if government will know its better. its your money and you have proof for it.
Thanks.

I didn't deposit anything with them. A lot of people list their phone numbers on there so you can just call them up instead.

[xyoends]

I honestly wouldn't risk it.

I know from past experiences just dealing with the gov is a pain in the butt. I would do it installments throughout the week or possibly 1 $4000 withdrawal every single week. This would most likely guarantee no reports to the IRS but there is no certainty. I'm sure coinbase has some sort of algorithm that it uses to detect things like this.

Hope it works for you!!!

[xephireusMMX]

You may withdraw much more than $10K and if any institution want clarification, they just ask (when I sending from bank account higher sums, bank ask for reason of this transaction), but always report your income properly

[GBGglenn]

Personally I would sell for cash.

Yea same, then you could deposit it anyway

Would'nt dare to do that myself. I know people who have been working, get paid in cash and put it into the bank and have had to repay the amount of cash that the tax would cost. If that happens it would be good if you also could prove that you've sold BTC and not been doing illegal stuff.

I would talk to the bank and pay the amount of tax just to be on the safe side, dont want to get in trouble with the government.....but i may just be a coward.

[joeyjoe]

Personally I would sell for cash.

Yea same, then you could deposit it anyway

Would'nt dare to do that myself. I know people who have been working, get paid in cash and put it into the bank and have had to repay the amount of cash that the tax would cost. If that happens it would be good if you also could prove that you've sold BTC and not been doing illegal stuff.

I would talk to the bank and pay the amount of tax just to be on the safe side, dont want to get in trouble with the government.....but i may just be a coward.

Sell for cash, buy expensive car. Sell it a few months later. Claim it was a prize.

[krystalwhite]

Just a thought - unless you need the cash for a purchase or to settle accounts etc why not buy gold or silver with the bitcoin and store until needed  (NB: this is not financial advice).

Or if you are purchasing something see if the vendor will accept BTC.

Money through your account is tracked - worldwide and it won't be long before the authorities want to put in place regulation - as per usual.

Possibly sell some small amounts through ebay - although always a risk with paypal.

kw