Moving Bitcoin to El Salvador

[Auroraner]

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.

[Joshua01]

What if the family created a wallet and shared the seeds?

For example, person A in the United States creates a wallet and generates seed words

Salvador's B restores the second instance of the wallet to another device.

Then A can still buy and deposit in the wallet in the United States, and never need to transfer money, because B from El Salvador can consume directly from it.

[pooya87]

to an El Salvador wallet,

Bitcoin "wallets" are not like bank accounts to have a location in a country, unless you are not talking about a wallet and instead an account (sometimes referred to as custodial wallets) in which case you are still the owner of those bitcoins in the eyes of the "tax man" and same tax laws apply and you should consult an expert to know the details in your jurisdiction.

I already lost all my bitcoin in a boating accident.

I'm curious how does one lose bitcoin in an accident?

[Mbitr]

I already lost all my bitcoin in a boating accident.

I'm curious how does one lose bitcoin in an accident?

It’s a meme - started by fluffypony I think
https://twitter.com/fluffypony/status/943493541182963712?s=21
Lost coins = tax offset 

[cryptomaniac_xxx]

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.

Why not just move your bitcoin to a hardware wallet? I'm also not expert on taxes, but what advances that El Salvador? Yeah, I know that they have legalised and adopted bitcoin but I'm sure you have to pay government some taxes if you are holding your bitcoin in that country? Just friendly advice, not your keys, not your coins.

[veznata]

this is the last option for me but still an option. lets imagine most countries in the world totally ban bitcoin no mining, no exchanging no holding declaring it total illegal. small chance but still a chance for this to happen. then i will move to el salvador to spend my money. it's simple. as far as I know bitcoin is still legit in many developed countries incl usa, europe, japan etc. so nothing to worry as of today but el salvador is not a bad option overall.

[DapanasFruit]

I am not really a tax expert, but I know is that if you are a US citizen you have an obligation to report and pay taxes no matter if you are right now in the USA or any other country. Of course, it would not be easy as ABC. What if you opted to retire in El Salvador and use your Bitcoin to pay for goods and services...will there be still an obligation for you to pay taxes. Well, I am hoping someone can be clarifying this whole thing for us though this does not bother me at all since I am not an American citizen nor do I live in the USA or El Salvador. I am in fact lucky because my government does not yet care about cryptocurrency-based income.

[ropyu1978]

moving bitcoin to el salvador is not bad, but for the time being we don't need to move bitcoin to el salvador, because there are still many countries that still accept bitcoin with open arms, there are countries that post negative about bitcoin, but they still accept bitcoin, and don't ban bitcoin exchange, maybe for now it's not the time for us to discuss this issue, first focus on the price of bitcoin. how bitcoin can continue to rise and continue to grow...

[bitmover]

to an El Salvador wallet,

Bitcoin "wallets" are not like bank accounts to have a location in a country,

This is why bitcoin is borderless.
You can send payment from us to Japan, el Salvador or China or to your neighbors and it makes no difference

Also, there isn't a physical location where bitcoins are stored. I don't exactly have it in my phone or in my hardware wallet. It is everywhere  , in every full node. What I have in my equipment is the private key that let me spend it. You could keep that in multiple locations.

So, there is really no way to move your bitcoin to El Salvador

[odolvlobo]

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.

In the U.S., simply moving bitcoins is not a taxable event. Furthermore, bitcoins don't exist in any location. You can move them from one address to another, but you can't move from one country to another.

However, if you are sending them to an account maintained by a company in a foreign country, then that may have tax implications.

[dansus021]

To be honest not everyone like taxes    especially if the country have a lot of corruption problem. For now el Salvador is open to bitcoin but i think it will start to tax the bitcoin, and in my opinion country that's aren't banning crypto will do the same

[Bttzed03]

~ 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?

You probably have to physically move to El Salvador and change residence/citizenship to avoid US taxes. It doesn't matter which wallet you move your bitcoins especially if it's been declared or already accounted in a custodial platform/wallet/centralized exchange

To be honest not everyone like taxes   

The OP's opening sentence was an obvious sarcasm. He's finding ways to avoid it if you read the whole post.

[sapnu]

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.

Bitcoin in El Salvador is still being developed as well as other cryptos. Stuffs like bitcoin wallet doesn't give off much benefit yet because things are yet to be settled there. Someday, maybe it would save us from fees and taxes whenever we use a wallet pinned in El Salvador but for now, it's not ideal yet. If you want a better outcome or services in crypto, move to El Salvador yourself and enjoy the benefits such as free citizenship and proper treatment for crypto enthusiasts. Also, let us hope it would work well for El Salvador so the world will have an idea on how great crypto really is.

[yhiaali3]

I don't think the idea is a good one, if you avoid paying taxes because you definitely have to pay taxes in El Salvador too, El Salvador has accepted Bitcoin officially so there will definitely be regulations and laws for cryptocurrencies and you will definitely have to pay taxes on the cryptocurrencies that you hold In your wallet, besides, it is not a wise idea to have your private keys seen by anyone other than your family.

[taufik123]

I don't think the idea is a good one, if you avoid paying taxes because you definitely have to pay taxes in El Salvador too, El Salvador has accepted Bitcoin officially so there will definitely be regulations and laws for cryptocurrencies and you will definitely have to pay taxes on the cryptocurrencies that you hold In your wallet, besides, it is not a wise idea to have your private keys seen by anyone other than your family.

Your tax issues are correct, El Salvador will have specific laws governing cryptocurrencies and tax issues will also be regulated. They will not be able to avoid taxes when a country has actually adopted it and has legalized it.
As a good citizen, you should be obedient to pay taxes, because it is in the interest of developing the country.

[seoincorporation]

to an El Salvador wallet,

Bitcoin "wallets" are not like bank accounts to have a location in a country, unless you are not talking about a wallet and instead an account (sometimes referred to as custodial wallets) in which case you are still the owner of those bitcoins in the eyes of the "tax man" and same tax laws apply and you should consult an expert to know the details in your jurisdiction.

I used to think like you, bitcoin wallets don't have a location, but today i learned that i was wrong. Yesterday El Salvador launched it's own wallet App with the goal of providing $30 in bitcoin to all the citizens who use their wallets. If you want to read more about the wallet i will leave a link for you.
https://www.trustnodes.com/2021/06/25/el-salvador-unveils-chivo-wallet-30-bitcoin-for-every-user

I already lost all my bitcoin in a boating accident.

I'm curious how does one lose bitcoin in an accident?

You should ask this to Snowden  Some months ago he said the same on twitter:

To the extent I own crypto (unless and until it has been lost in boating accidents)

Sournce: https://ekoroi.com/cryptocurrency-edward-snowdens-thoughts-on-bitcoin-angers-maximalists/

[Alanaz]

I don't understand what you are saying above. what do you mean? what I know is that bitcoin wallets can be accessed anywhere without the need to move to several countries. this is not like an account and others that can only be used in one country because it is different.
and I also want to ask how did you lose your wallet while boating? i don't understand at all but i find this funny and doesn't make sense

[fiulpro]

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.

I think he means if it would be beneficial to move his bitcoins in a local wallet of El Salvador which would decrease the risk of it being banned etc..
Well I do think that you won't have to particularly go that far since right now in US there is low threat for bitcoins being banned and even if there was a probelm then usually the government gives people a certain amount of time and then you can for sure do something like that. If you are going for a long term holding them why not buy something like ledger ? This would mean you would not have to move it here and there and it would still be with you but since you said that you lost all your bitcoins in a boating accident then I assume your friend would be more careful with carrying it. Better buy a safe in a good bank and keep it locked until you need to use it.

[haidil]

Indirectly, like it or not, taxes are an integral part of this. because if crypto has become legal in the government, this tax is definitely one of the things that is mandatory. and for plans to move your wallet, I think you don't have to do that because there are so many other options that can be taken apart from moving your wallet

[hatshepsut93]

Are you thinking of some sort of loophole like selling BTC in El Salvador to avoid paying taxes because out there it's a currency conversion and not taking profit on investment? I'm pretty sure the US or any other government will view it as taxable event, because generally governments always expect taxes from doing foreign investment activity, which usually results in a person having to pay taxes in both countries, unless there's an agreement between both countries.