This thread follows my earlier thread "cashing out bitcoins" https://www.offshorecorptalk.com/threads/cashing-out-bitcoins.23755/
Thank you for helping out so far with the queries and also to those who reached out to me and talked in detail. I have come to the conclusion that I take up residence in a territorial tax country.
The next problem:
The next problem I'm supposing is that the bank or the EMI will ask for the source of funds
For about half of my bitcoins, I have very reasonable explanation. I invested a small amount into an alt coin that went so hot and I have clear proof of how I got those funds, its very clear in the chain and transaction history I maintained.
For the remaining half however, there is confusion and lack of clarity because the funds were transfered to and fro across exchanges, wallets and icos back in the day, also decentralized exchanges and protocols. The very nature of crypto prevents the clear transaction records for that other half.
Keep in mind the amount isn't tiny. Assume it would be high 6 figures at least.
Question: So my concern is how would you explain the source of income to the EMI or bank account? Or, which bank should I go with in order to minimize these issues? Actually I don't mind paying a tiny % tax either, but tax free is good. Any services/solutions you could point me to make explaining easy
My goals:
I want to convert the bitcoins into a non volatile asset, but I prefer USD/EUR. I imagine it must be possible to just purchase real estate with bitcoins without getting a bank involved for the short term (it would be done using my residency card in the territorial tax country) In that case, if I sell the real estate after holding for an year (or bit longer), would the bank still question the source of funds or it gets too old to care?
Keep in mind: I am in no rush to start using the funds immediately as I would be doing regular online consulting work also.
Thank you for helping out so far with the queries and also to those who reached out to me and talked in detail. I have come to the conclusion that I take up residence in a territorial tax country.
The next problem:
The next problem I'm supposing is that the bank or the EMI will ask for the source of funds
For about half of my bitcoins, I have very reasonable explanation. I invested a small amount into an alt coin that went so hot and I have clear proof of how I got those funds, its very clear in the chain and transaction history I maintained.
For the remaining half however, there is confusion and lack of clarity because the funds were transfered to and fro across exchanges, wallets and icos back in the day, also decentralized exchanges and protocols. The very nature of crypto prevents the clear transaction records for that other half.
Keep in mind the amount isn't tiny. Assume it would be high 6 figures at least.
Question: So my concern is how would you explain the source of income to the EMI or bank account? Or, which bank should I go with in order to minimize these issues? Actually I don't mind paying a tiny % tax either, but tax free is good. Any services/solutions you could point me to make explaining easy
My goals:
I want to convert the bitcoins into a non volatile asset, but I prefer USD/EUR. I imagine it must be possible to just purchase real estate with bitcoins without getting a bank involved for the short term (it would be done using my residency card in the territorial tax country) In that case, if I sell the real estate after holding for an year (or bit longer), would the bank still question the source of funds or it gets too old to care?
Keep in mind: I am in no rush to start using the funds immediately as I would be doing regular online consulting work also.