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Author Topic: Moving Bitcoin to El Salvador  (Read 365 times)
teosanru
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April 01, 2022, 06:41:31 PM
 #41

I’m sure everybody loves paying taxes, but I am no expert but say with this current drop In price if I moved bitcoin outside of the US and to an El Salvador wallet, would that be saving on the future sale of bitcoin or what would that look like for capital gains?
I’m asking for a friend, I already lost all my bitcoin in a boating accident.
This doesn't depend upon your place of storing bitcoins, this depends upon your residential status, if you are a resident of the United States no matter where you earn from your bitcoins you'll have to pay your taxes upfront. Yes if you yourself decide to move out of the US and then you fail to comply with the rule that makes you a resident, then such income which you have earned on an asset kept in another country won't be taxable in your hands, the intent is to tax the residents because no matter from where they earn, they live in the US therefore have to pay for the well being of the US.
markinaz
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April 01, 2022, 06:57:43 PM
 #42


This doesn't depend upon your place of storing bitcoins, this depends upon your residential status, if you are a resident of the United States no matter where you earn from your bitcoins you'll have to pay your taxes upfront. Yes if you yourself decide to move out of the US and then you fail to comply with the rule that makes you a resident, then such income which you have earned on an asset kept in another country won't be taxable in your hands, the intent is to tax the residents because no matter from where they earn, they live in the US therefore have to pay for the well being of the US.
[/quote]

I agree with your post, but one caveat... I think you mean citizenship, not residential status.  I think it was in the early 2000s that the US changed that.  If you are a US citizen, you are subject to US taxes for life no matter where you live:

https://brighttax.com/blog/capital-gains-tax-for-us-expats/

I think the only option is to renounce citizenship.  Also, this is why Puerto Rico is so popular, as that is still in the US technically and you are only subject to their taxes.
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