How to prove source of funds, bitcoins back 2011?

[uplana]

I want to know how it will be possible to prove source of funds towards tax authorities for my small bitcoin stash.

Back in 2011 I bought some amount of coins for a few hundred $ now you may imagine they are worth a little more. During the past time I have found ways to get a stream of money out of the wallet in cash.

Anyway, I have sufficient of money to buy some nice property if I can get the money out, but that would require source of funds documents, I don't have any of this since I got the btc's by trading with some gods and services.

I plan to relocate to avoid being taxed from this, no one know I own them so no issue, but that's a different story.

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[LondonOTC]

Best way would be finding somebody that accepts crypto and pays you invoices. You can deduct expenses from the company and payyourself a salary to optimize tax

 

[Martin Everson]

Firstly check your local tax laws. You may not be taxed for capital gains. You may not even have to declare the crypto. You could be worrying about nothing in best case. Which country are we talking about here?

uplana said:
Back in 2011 I bought some amount of coins for a few hundred $ now you may imagine they are worth a little more.
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If you bought the coins for a few hundred as you say. Then your salary or savings may be good enough to prove source of funds. Unless you had none of this at the time.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[OffshoreTim]

LondonOTC said:
Best way would be finding somebody that accepts crypto and pays you invoices. You can deduct expenses from the company and payyourself a salary to optimize tax
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Hi
Can you guys elaborate a bit about this?

I have some crypto (not bitcoin) purchased back in 2015, also bought some cloud mining contracts in 2016.

These are setting in a cold paper wallets, in my bank's safe deposit!

The problem is that I lost access to all old accounts (emails, exchanges etc...) so I'm almost certain I cannot provide any paper trace.

As much as I remember, I used to deal with a Chinese exchange... way back before the government banned them.

So its interesting to see ideas about creating some sort of documents ... specially about the freaking source of funds questions!

Thanks
Tim

 

[LondonOTC]

OffshoreTim said:
So its interesting to see ideas about creating some sort of documents ... specially about the freaking source of funds questions!
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Depends on the country you live, some banks ask, some others not. The higher the ammount, the more chances of being asked.

If you need proof of income, then you need somebody that pays you invoices, I suggest using a company for it and try to deduct as much expenses as possible.

Contact me in you are interested.

 

[Martin Everson]

OffshoreTim said:
So its interesting to see ideas about creating some sort of documents ... specially about the freaking source of funds questions!
Click to expand...

Maybe you bought the crypto from a guy on a laptop at a car boot sale in 2015 for pennies and the receipt got damaged so you re-created it rof/%.

https://www.fakereceipt.us/sales_receipt.php
P.S Btw this is a joke ca#"!

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Fulton Abraham Sanchez]

If you want to invest in the US, there are parties willing to sell RE to crypto investors.

 

[Davis123]

FAS said:
If you want to invest in the US, there are parties willing to sell RE to crypto investors.
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Yes open up yourself for some serious taxation nightmare chasing you and your beneficiaries all over the world. US is one country to stay away from. Better to invest in UK with more favorable conditions for foreigners.