Crypto withdrwals in USA

[udayantha11]

I have a question that

Lets assume that I have USDT 12000 ON my Binance US Account. If i withdraw USDT to my bank account in USA.  What about the possibility and taxation about it?

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[Findingnemo]

I have a question that

Lets assume that I have USDT 12000 ON my Binance US Account. If i withdraw USDT to my bank account in USA.  What about the possibility and taxation about it?

Basically you can't withdraw USDT balance to your bank account directly means you have to sell USDT to USD first then transfer it to your bank account and according to the US cryptocurrency tax withdrawal of crypto to fiat will comes under capital gains so yes you have to pay taxes but how much the gains will be while converting USDT to USD?

[EarnOnVictor]

I have a question that

Lets assume that I have USDT 12000 ON my Binance US Account. If i withdraw USDT to my bank account in USA.  What about the possibility and taxation about it?

Know that the US likes to lead in everything and they are the most advanced in Crypto regulation as of today, so be sure that you are legit and straightforward with provable transactions in the first place. Having satisfied that, the source of the money matters, so long as the money is an income, it is taxable even if it is less than a dollar.

Taxable Crypto earnings in the US include but are not limited to all the payments received (incentives, mining, hard fork, sweepstakes and any online activities that generate money as crypto) and gains from holding etc.

As a liable taxpayer in the US, you will be sure to report all the necessary tax returns, and if you are dealing with the exchanges in the US for the transactions, they would report it to IRS (Internal Revenue Service), and you will also be furnished with a copy of the report in case you need it for documentation.

[NeuroticFish]

Lets assume that I have USDT 12000 ON my Binance US Account. If i withdraw USDT to my bank account in USA.  What about the possibility and taxation about it?

Taxation in US is real. You have to declare the capital gains and you have to expect that either Binance US or your bank (or both) will also send that info to IRS (so if you don't declare you may get into troubles).
Also as said, you will withdraw USD to your bank, and this means selling crypto for fiat. If you have not papers on buying that crypto, the entire amount may be considered gains.

I will add that withdrawing 12k in one step to banks can be tricky, some may be asking many questions about where's that money from, and ask about even more papers (I don't know if it's the same in US, but in some other countries that's real, so I'd be wary).

[laurenB7742]

I will add that withdrawing 12k in one step to banks can be tricky, some may be asking many questions about where's that money from, and ask about even more papers (I don't know if it's the same in US, but in some other countries that's real, so I'd be wary).

In my country, as long as the Binance account has full KYC when using P2P to convert to fiat to transfer to the bank, I find $12k is a normal number and there are no problems or too many questions. Since this is a large amount, the only risk of P2P trading on binance that we often encounter is a scam situation, meaning they do not pay you and still click the “paid” button. If we are not careful when checking and clicking "received" our USDT will be lost, so to avoid trouble we usually deal with smaller amounts like $2k per transaction and repeat many times.
It is best not to exchange 12k $ in 1 time, that money will not be lost but will attract the attention of scammers, intend to appropriate and we will fall into a dispute, and take a long time.

[AnotherAlt]

What about using a P2P system on Binance?
I am not sure if Binance and Binance US have the same feature. If Binance US has a P2P Trading system, You will see a lot of buy orders placed by buyers, You can go there and sell your cryptocurrency to them, and the Buyer will deposit the money into your bank account. Before releasing the funds, Make sure you have received the funds in your bank account. Do it part by part. But, If Binance US Doesn't have P2P System. You just wasted your time successfully by reading this post

[hd49728]

What about using a P2P system on Binance?
I am not sure if Binance and Binance US have the same feature. If Binance US has a P2P Trading system, You will see a lot of buy orders placed by buyers, You can go there and sell your cryptocurrency to them, and the Buyer will deposit the money into your bank account. Before releasing the funds, Make sure you have received the funds in your bank account. Do it part by part. But, If Binance US Doesn't have P2P System. You just wasted your time successfully by reading this post

Peer to peer trading can not solve this issue. Issue is when you deposit the money to your bank account, they will detect it and bank has relation as well as responsibility with IRS.

The issue comes with your deposit to your bank account, not how you do this? I believe Binance or Binance US can not solve this case and other exchanges too. Bank controls the game here.

[Tutorial] Crypto taxes for beginners. OP can read that topic and see how helpful it is for OP case.

[AnotherAlt]

The issue comes with your deposit to your bank account, not how you do this? I believe Binance or Binance US can not solve this case and other exchanges too. Bank controls the game here.

Now I wonder how people send money to their parents in the USA. Does the Bank also cut taxes when people send money to their parents? How will Bank know that the money was not from their Parents/Friends but from a business? If the P2P Buyer agrees to deal in this way, you can do this. In my country, banks ask for the source of money and the reason for sending the money. Buyers can easily say the money is from my business, and I am sending it to my friend. At least, I and others do it in my country.

[Eternad]

I think the bank will notify the authorities or the tax bureau there about your withdrawal, I think that they will probably ask to take part in your money, I mean they're the US government, they don't like you making money out of selling drugs, they don't like you because they're not getting their cut(taxes).

Nope, That's not how taxation works on US. You need to voluntarily pay your tax in IRS sand you will need to file a complete report of expenses or else you will be charge a tax evation crime. IRS on US is very strict on matter like this and you will not gonna like what they will gonna do once they caught you paying less or not paying at all.

[TribalBob]

What about using a P2P system on Binance?
I am not sure if Binance and Binance US have the same feature. If Binance US has a P2P Trading system, You will see a lot of buy orders placed by buyers, You can go there and sell your cryptocurrency to them, and the Buyer will deposit the money into your bank account. Before releasing the funds, Make sure you have received the funds in your bank account. Do it part by part. But, If Binance US Doesn't have P2P System. You just wasted your time successfully by reading this post

Peer to peer trading can not solve this issue. Issue is when you deposit the money to your bank account, they will detect it and bank has relation as well as responsibility with IRS.

The issue comes with your deposit to your bank account, not how you do this? I believe Binance or Binance US can not solve this case and other exchanges too. Bank controls the game here.

[Tutorial] Crypto taxes for beginners. OP can read that topic and see how helpful it is for OP case.

the bank is not that bad, I think, to the point of leaking funds into the tax department, because banks also protect the privacy of their customers, for tax matters usually individuals are honest or not with their income, which must be reported to the tax office (but many people avoid taxes)

[Obari]

What about using a P2P system on Binance?
I am not sure if Binance and Binance US have the same feature. If Binance US has a P2P Trading system, You will see a lot of buy orders placed by buyers, You can go there and sell your cryptocurrency to them, and the Buyer will deposit the money into your bank account. Before releasing the funds, Make sure you have received the funds in your bank account. Do it part by part. But, If Binance US Doesn't have P2P System. You just wasted your time successfully by reading this post

Peer to peer trading can not solve this issue. Issue is when you deposit the money to your bank account, they will detect it and bank has relation as well as responsibility with IRS.

The issue comes with your deposit to your bank account, not how you do this? I believe Binance or Binance US can not solve this case and other exchanges too. Bank controls the game here.

[Tutorial] Crypto taxes for beginners. OP can read that topic and see how helpful it is for OP case.

The OP asked about taxation on crypto withdrawal in the united states, and I really don't know if binance USA has the same feature with our regular binance, if yes, then it is very much possible to withdraw your crypto into your bank account via the P2P without been taxed.
*You can simply go to the p2p section
*Go to the buy order,
*Place an order
*Release the coin
*Wait on payment
*Confirm the payment and approve the coin release. Just as simple as that and maybe the payment description shouldn't be crypto related.

[odolvlobo]

Lets assume that I have USDT 12000 ON my Binance US Account. If i withdraw USDT to my bank account in USA.  What about the possibility and taxation about it?

I am not a tax expert, but my understanding (I have been dealing with this for years now) is that moving or withdrawing money or coins is not a taxable event. However, selling or converting coins, including USDT, is a taxable event. The conversion is considered as capital gains or losses.