I need advice, please point me in the right direction

[rydg187]

Hello Members,

I am new to this sort of stuff. I been reading through the Mentor Group and learning some. But still quite confused, you guys speak in English but its still seems like a foreign language to me hahaha 🙂

I need some advice. First let me explain what I am trying to achieve.

I am an American living in n**i America.

I am always reading how big companies like Google and Apple use offshore companies and bank accounts to escape the IRS. And I would like to attempt the same with my crypto trading

I started buying large amounts of crypto currency in Nov and Dec 2016. I currently have about $xxx,xxx in crypto currency. Throughout 2017 I was trading quite alot until the IRS released new rules regarding 1031 "like kind exchanges" Which basically ended all tax free like kind exchanges of crypto beginning 2018.

Right now the USA crypto exchange I use has not yet been forced by the IRS to provide trading account details like Coinbase has been forced to hand over account details. But I am certain the IRS will soon start forcing all crypto exchanges in the USA to report high dollar volume trades in the near future. I want to to be proactive and take steps now to hide my trading activity.

I would like to continue trading crypto but I don't want to keep paying capital gains taxes on every trade.

****Note that most crypto currencies, including Bitcoin (BTC), are not 100% anonymous. In fact, the majority of digital currencies are completely traceable. Monero is a anonymous crypto that could be compared to cash in many ways, however even if you only use anonymous digital currencies and, for example, buy Monero (XMR) your activities can be tracked via the exchanges, brokers and wallets you use, as well as through withdrawals to fiat currencies via the banking system for amounts over $10,000.

However using Monero and foreign crypto currency exchanges and Paper or Hardware wallets will make it very hard for the IRS or agencies to track. Withdraws to Fiat will need to be kept small well below/under $10,000 to prevent unwanted attention.

Here is the steps I am thinking of doing.

1. I am thinking to open an offshore corparte account with nominee director in a country that will keep my real identity private.
2. create a crytpo trading account on www.binance.com and verify the binance account using the offshore corporate documents. ****I want my Binance account to never know my true Identity. Only the corporate identity.
3. convert all my crypto assets to Monero and move to a private paper wallet.
4. Then move the Monero to Binance.com
5. Convert my crypto into Bitcoin and continue trading.
6. After a few years I would like to cash out some crypto $2000-$3000 per month into an overseas bank account tax free, but I have no ideas on how to cash out to fiat currency without attracting unwanted attention. My goal is to pay as little tax as I can.

I do not know if Binance will ask for my real IDs or what other information I will be asked to provide.

I don't mind paying some taxes (The USA government does need revenue, I understand that) and some crypto I sell to fiat I am willing to pay full capital gains tax, I just don't want to be tax raped. I am tired of being oppressed by the IRS and the USA government.

Tell me your thoughts and advice please, I am wanting to learn as much as I can about this subject.

 

[rydg187]

I am interested in doing what "mnschwarz" has said in this post.

>>>> What are the best crypto currency tax planning advice?


"you may be best suited to follow similar structures that the large American giants such as Apple use. That is keep your profits offshore to defer taxes. And I say defer because that is all the large companies are doing, albeit indefinitely. If you take your profits back onshore you will be taxed on them. You may be better served with a goal to not take your profits back to the US in the future."

 

[negon]

rydg187 said:
I am new to this sort of stuff. I been reading through the Mentor Group and learning some. But still quite confused, you guys speak in English but its still seems like a foreign language to me hahaha
Click to expand...

this forum is not primary for English speaking people. Actually the majority of users of this forum are from all other countries than the USA and UK or other English speaking nations. Since you find your way to the forum and even paid to be a MT member here I assume it isn't that bad!

rydg187 said:
****Note that most crypto currencies, including Bitcoin (BTC), are not 100% anonymous. In fact, the majority of digital currencies are completely traceable. Monero is a anonymous crypto that could be compared to cash in many ways, however even if you only use anonymous digital currencies and, for example, buy Monero (XMR) your activities can be tracked via the exchanges, brokers and wallets you use, as well as through withdrawals to fiat currencies via the banking system for amounts over $10,000.
Click to expand...

It's possible to MASK your crypto transactions so it won't be traceable!

As an USA citizen you will have to provide documents to the bank where you receive the money in exchange for your crypto. There is no bank as far as I know that allow any US citizens to maintain an account without to complete forms to comply to FATCA!

 

[rydg187]

auric said:
this forum is not primary for English speaking people. Actually the majority of users of this forum are from all other countries than the USA and UK or other English speaking nations. Since you find your way to the forum and even paid to be a MT member here I assume it isn't that bad!
Click to expand...

Yes I assumed many on the site are from many parts of the world, I meant to say reading the content here to me is is like a physics class.

auric said:
It's possible to MASK your crypto transactions so it won't be traceable!
Click to expand...

I assume you mean using things like "BTC mixers", These can work very well from what I understand. Hard to find a mixer that wont steal your bitcoin though. Monero is pretty private and untraceable. I feel fairly safe using Monero.

auric said:
As an USA citizen you will have to provide documents to the bank where you receive the money in exchange for your crypto. There is no bank as far as I know that allow any US citizens to maintain an account without to complete forms to comply to FATCA!
Click to expand...

What is your advice for avoiding taxes on my Crypto trades to fiat, are EMI's and PSP are my only options?

What about tax deferral? Am I correct in thinking there is nothing illegal with keeping fiat in a personal bank account offshore overseas using my real identity docs, and wait for a tax repatriation Holiday to bring the money back the USA many years later and pay a much lower tax of around 10-15%.

Isn't this what many big companies do?

 

[KJK]

It's very difficult if you are an American, there were some countries offering privacy (Switzerland being the most famous) but then you could see that the US three-letter agencies have power everywhere, even if they are breaking the constitution of another country, they can enforce their rules.

So it will be very difficult to find a bank that wouldn't report. And if they (or you) don't report, they can withhold 35% of your deposit.
It's not about "avoiding taxes" and opening an offshore company, it's more about staying under the radar for your IRS.

I'm not sure if "laundering" crypto through Monero is the best way to go, sure it becomes untraceable but that can actually be a disadvantage because you won't be able to prove that the money came from your trading and not from selling drugs.

Big companies have much more options than you do, multiple jurisdictions, transfer pricing, expensive lawyers etc.

Some Americans are renouncing their citizenship which is one way to go - but first you must get citizenship of another country.

 

[JohnLocke]

KJK said:
Some Americans are renouncing their citizenship which is one way to go - but first you must get citizenship of another country.
Click to expand...

That's not that difficult also not in Switzerland if you are willing to move there!

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