Tax free crypto idea

[yhiaali3]

I assume you meant you set up a wallet on a crypto exchange. In that case, the exchange has full view and control over your deposited funds and your identification documents. They are also going to give that information to your government. And if they decide to freeze your account and your funds, there will be nothing you can do to stop them.

Most likely he means a central exchange, especially since he says that he used an American passport, an American tax identification number, and an American bank account. This means that he completed the KYC on a central exchange.

If this is true, then it is unfortunate that he does not know the difference between a wallet and a central exchange, or perhaps there is a possibility that he used a central wallet, which is bad in both cases, especially since he is thinking about tax evasion.

[noormcs5]

Tax loophole. Not evasion. I think it’s the perfect scenario.

Tax loophole is nothing but a tax evasion. Loophole means that you are trying to find a legal way to save your tax but whatever way you will adopt, you will be manipulating with the law. If tax loophole was legit then everyone would have saved the taxes.

Secondly, have you ever thought that if you are ever caught in the further and the authorities come to know how you manipulated the law to find a loophole (as per your words), they can take legal actions against you. If the money you are hiding from the government is significant it can be easily traced when you will buy property, cars or assets with it and you haven't declared that money before in the income tax returns.

[Maus0728]

Are you looking for a legal tax loophole, or are you looking for tax evasion?

Aren't they the same in the basic sense? The only difference is that you don't get to prison and only the billionaires can do those loopholes because they know the work around? At least that's what I think is the difference between the two really similar thing.

To OP, I think you can probably get away with taxes in a way by doing P2P with your bitcoin, I don't know if it's the same with other countries but when I do sell my crypto in a P2P market, it's always going smooth and no taxes were needed to be paid because you're directly doing transactions with a person.

[LoyceV]

Are you looking for a legal tax loophole, or are you looking for tax evasion?

Aren't they the same in the basic sense?

One is legal (and it's your right to try to pay as little taxes as possible within the limits of the law), the other is illegal. That's quite a difference.

[zasad@]

A person does not realize that there are no statutes of limitations for tax crimes in America.
The person does not realize that a tax-free gift has limitations and that the gift must be given to a close relative. In my country this is son, daughter, wife, parents, brothers, sisters, grandparents. In other cases the gift is taxable.
I don't understand how to give gifts to myself. Then he needs to open an account in Switzerland for another close relative, but the US tax office can still order an audit of any tax return.