How does one safely deposit large USD amounts ($50k-$100k) after selling BTC?

Quote from: fryarminer on July 07, 2014, 02:06:52 AM

Quote from: boliu on July 07, 2014, 12:51:33 AM

withdraw $9999 each time. and open multiple accounts

This.

Under $10,000 no flags are raised. I don't think.

Not entirely correct, as any withdrawal over about USD 9K can trigger a report, a single withdrawal of USD 9999.oo will trigger both a cash withdrawal as well as a SAR; suspicious activity report.

If you ask the bank if a withdrawal is going to be reported, the law mandates that it must be, even if it were expempt before you asked.

The federal government is very, very concerned about your cash.

Quote from: jbreher on July 07, 2014, 02:35:09 AM

Quote from: fryarminer on July 07, 2014, 02:06:52 AM

Quote from: boliu on July 07, 2014, 12:51:33 AM

withdraw $9999 each time. and open multiple accounts

This.

Under $10,000 no flags are raised. I don't think.

Color me stunned. After all the factual info here in this thread about why this is a bad idea, you don't 'think' flags are raised? I don't believe you're thinking at all.

This is a special sort of activity for which the regulators are on alert. At least here in the land of the formerly free and the home of the cowed. They deem it important enough that they have their own pet term for it (structuring? - don't remember). But finagling your financial transactions in a way to purposely skirt the limits in place is also considered criminal, and earns you a special spot on their hit list.

Does this suck? In my mind yes. Is it fair? In my mind no. But this is the world in which we live.

If you want to play Amerikan roulette in this manner, then I guess that is your right. But please don't drag others to the gulag due to your ignorance.

Yep; they call it "structuring", in that withdrawals are structured and timed so as to avoid reporting by the banks.

It's a crime now here in the People's Republic.

The funny thing about this thread, to me, is that it's a worry about something that may not even be relevant if bitcoin reaches these values. If we get to the point where bitcoins are worth 50K or more, it'll likely be so widely accepted that you won't need to convert it to USD, you'll just be able to spend it like you would dollars.

Quote from: halfawake on July 07, 2014, 02:45:26 AM

That will be true at some point but I am asking about 2-8 months in the future. I don't think a single BTC will be worth $50,000 in 2-8 months.

But yes, the future definitely holds easier lives for all of us bitcoiners.

What's wrong with saying "I sold some btc?" Just pay your taxes and you'll be fine.

You have nothing to worry about. Sell it however works best for you. You are selling something and that is OK to do. It doesn't matter if it's gold, silver, land, stocks, or bitcoins. Bitcoins are legal to own and legal to sell. It doesn't matter if the bank files reports on the transaction because you are conducting legal activity. Any reports filed are done to comply with regulations, not because it is illegal to deposit large amounts of money in your account. No government agency is going to sieze your funds because it was a large transaction. The bank isn't going to ask you what the money was from.

Tax evasion is a crime. If you don't report it on your taxes when you file, the IRS may want to talk to you. Like the saying goes... "Only two things in life are certain, death and taxes."

Quote from: ensign_lee on July 07, 2014, 02:59:31 AM

What's wrong with saying "I sold some btc?" Just pay your taxes and you'll be fine.

I guess I wasn't sure how banks/government viewed the subject of bitcoin and how that might affect my banking experience. Thanks though, I think I have less to worry about than I thought.

Quote from: ggoner on July 07, 2014, 04:09:36 AM

Much appreciated post. That was exactly an answer to my question.

Quote from: fryarminer on July 07, 2014, 02:06:52 AM

Quote from: boliu on July 07, 2014, 12:51:33 AM

withdraw $9999 each time. and open multiple accounts

This.

Under $10,000 no flags are raised. I don't think.

In a casino this is called structuring....same thing with banks. Illegal. Great way to not only throw flags, but get all your funds seized for good.

DO NOT DO

Quote from: SweetBits.biz on July 07, 2014, 11:43:46 AM

Quote from: fryarminer on July 07, 2014, 02:06:52 AM

Quote from: boliu on July 07, 2014, 12:51:33 AM

withdraw $9999 each time. and open multiple accounts

This.

Under $10,000 no flags are raised. I don't think.

In a casino this is called structuring....same thing with banks. Illegal. Great way to not only throw flags, but get all your funds seized for good.

DO NOT DO

Yep!

Quote from: bgibso01 on July 07, 2014, 01:45:08 AM

Since the IRS has declared btc to be property, be sure to hold large amounts 1yr +1 day so you can get capital gains treatment.

What happens if you sell it before a year is up? What is the tax % then?

And what is it compared to if you hold it for over a year?

-edit- nevermind. I found a good answer to my question here:

http://www.investopedia.com/terms/c/capitalgainstreatment.asp

Quote

Definition of 'Capital Gains Treatment'

The specific taxes assessed on investment capital gains as determined by the U.S. Tax Code. When a stock is sold for a profit, the portion of the proceeds over and above the purchase value (or cost basis) is known as capital gains. Capital gains tax is broken down into two categories: short-term capital gains and long-term capital gains. Stocks held longer than one year are considered long term for the treatment of any capital gains, and are taxed a maximum of 15% depending on the investor's tax bracket. Stocks held less than one year are subject to short-term capital gains at a maximum rate of 35% depending again on the investor's tax bracket.