Selling bitcoin for paypal. Do I need a license to do this/ need tax advice.

[gentlemand]

Wow, if I were to not get a money transmitter license and just receive the money via paypal buy the bitcoin send it to him keep the $250 and if the money is not linked to some form of criminality from an investigation what would happen?

You'd be breaking the law if you live in a place where that law applies. The act of handling money without following the rules is a crime in itself. Obviously you have more problems if that money is crime related too but even if it's completely clean you're still flouting rules they take seriously.

If it was a few bucks here and there no one's going to care but you're talking about pretty large volumes and at some point that might alert someone. No one's getting executed or anything but it's going to be problematic.

There's real money involved which means real law applies just as much as anywhere else. It's no longer an internet obscurity. People need to figure that out before they embark on things that could end up getting very messy.

If this was 2011 then it would be a different matter. It isn't. Enough places have clarified the legal position now. If you're in a place where it is clarified then it's clear enough what needs to be done.

[carlfebz2]

My question is, I am selling bitcoin to a trusted individual, he sends me PayPal for bitcoin. He will be sending me $5,000 in PayPal per day and I will be sending him $4,750 in bitcoin per day keeping $250. Do I need a license to conduct this or any other tax advice I should know about? Thanks.

You wont have any problems with taxation but the real problem lies either on the user you are transacting and on that paypal account you do have.

Be sure that those transactions wont really flag in Paypal because anytime it can really be locked if the platform would see it suspicious.

Those are the only things that you should be concerned of not on the taxation thing.

[kawetsriyanto]

If you do with your trusted friend, why would you need a tax or license? is it only between you and your friend, isn't it? or, previously, is there any certain regulation in your country that says that you must pay for taxes or even have a certain license? or it is only the approval between you and your friend? I still do not know enough about the case of you and your friend in your country. But, it must be any certain agreement to ensure that your transaction will be okay someday.

[MCobian]

Take it easy there are no regulations regarding taxes in bitcoin transactions, what else do you do personal trading so you can be free of taxes.
I often do personal trading, and safe until now. I have never had a tax problem, but my advice is to avoid using it paypal. There have been many
cases of paypal accounts locked suddenly without apparent reason. I recommend using Paxum or perfect money.

[bitcoinpaypalguy222]

If there were no issues with my paypal account and the money I receive it completely clean and the person I am working with is trusted and legit what would be my issues regarding taxes? All my business is is I get sent $5,000 in paypal, send $4750 in Bitcoin and keep the $250. I am asking only for what to do with taxes and do I need licenses and things like that not for advice on paypal/is the person im working with trusted or is the money I receive clean.

[seoincorporation]

My question is, I am selling bitcoin to a trusted individual, he sends me PayPal for bitcoin. He will be sending me $5,000 in PayPal per day and I will be sending him $4,750 in bitcoin per day keeping $250. Do I need a license to conduct this or any other tax advice I should know about? Thanks.

It's possible and legal to do it, lot of people in this forum offer that kind of trade. But the error will be if the user who made the paypal payment specifí it was used to buy bitcoin, it can be a payment under marketing services or something like that. That way PayPal will be happy with the transaction and you will avoid any kind of problem.

[Maus0728]

You wont have any problems with taxation but the real problem lies either on the user you are transacting and on that paypal account you do have.

I don't think so. OP is dealing with a large amount of money that is traded on a day to day basis. Receiving $ 5,000 each day is not a joke and could be subjected to an illegal transfer of money in the eyes of law especially if you are US based citizen. I also have the same sentiment with regards to OP but I didn't notice that the amount of money he is transferring can be against the Federal Law.

I am asking only for what to do with taxes and do I need licenses and things like that

I am not a US based citizen but I have done my research to help and give you a bit of information what are the steps on what are you going to do with your taxes based on the information given by @gentlemand.

The links below can be tiresome to follow but I would rather deal with those papers and requirements to avoid such problematic events in the long run.

[1] The Quick Guide To Money Transmitter Licenses

[Harlot]

If you are in a AML-strict country I think it's best that you have proper documentation with the transactions you will make with him. You may even ask his valid IDs as a way of proof that you have indeed a customer and this will be easier for the authorities if they somehow question him about the transaction he is making with you. Keeping all the invoices, tx ids, as well as connecting the Paypal payments and the tx ids should also be documented so that you are prepared when someone will question you. This will also make it easier for you on keeping track the profit you will be making.

[Lanatsa]

If you are in a AML-strict country I think it's best that you have proper documentation with the transactions you will make with him. You may even ask his valid IDs as a way of proof that you have indeed a customer and this will be easier for the authorities if they somehow question him about the transaction he is making with you. Keeping all the invoices, tx ids, as well as connecting the Paypal payments and the tx ids should also be documented so that you are prepared when someone will question you. This will also make it easier for you on keeping track the profit you will be making.

Wise thing to be done and it would be better to keep those important info's but it can already be automatically seen since paypal platform can give out such history.

You should also kept TX transaction on btc transfer made and plus with the conversations with the said person.Its better to be prepared than have nothing at all and just

in case if there are verifications or clarifications on where those funds came from then you do have something to tell and can show off.