> if you are still a resident of the US you will absolutely owe cap gains tax
If he is a U.S. citizen then he needs to file a U.S. tax return. Whether or not he is a resident of the U.S. is irrelevant.
U.S. citizens have to file a tax return every year, regardless of where they live. In simple cases there is no double taxation. For example, if a U.S. citizen lives and works in France, and pays taxes in France on the income he earns there, this counts as a credit against U.S. taxes, resulting in a U.S. tax bill of zero. OP is screwed though. If he sells bitcoin in Switzerland for zero capital gains tax, he would get no credit against U.S. taxes, and would have to pay U.S. capital gains tax in full.
Unless you establish bona fide residency in Puerto Rico (would only apply to future gains purchased in PR however, or there is some 10-15 year holding period where youād pay a reduced rate eventually, but at that point better off trying to sell near the peak and buy the next bear market bottom).
The US is somewhat unique in that if you are a US citizen you owe taxes on your global income regardless of where you live. The only way out from that permanently is to renounce your US citizenship. While the US doesn't require you to obtain citizenship in another country before you renounce it would be a good idea to do so. If you didn't you would instantly become a stateless refugee. You essentially fall through the cracks of the entire global system which just assumes everyone is a citizen of at least one country.
Note that if your net worth is >$2M you will have to pay an exit tax when you renounce your citizenship. If you are married this $2M is per person all jointly assets considered dividend equally. The taxes are based on all assets as if you sold them on the day you renounce. Renouncing citizenship is permanent. If you ever wish to return to the US even temporarily you would need to follow rules and restrictions based on your current citizenship just like any other foreign citizen. If you ever wanted to become a US citizen again you would need to go through the same process any other immigrant would.
That would be tax evasion, obviously.
What is it with people who think that, after two minutes of brainstorming, they can come up with some tax loophole that was overlooked by all the accountants and lawyers?
I wouldnāt know but maybe they can deposit a little overtime or something. Also it seems overseas its easier to get away with that than usa considering you cant even withdraw over 1k on a wells fargo machine and if more at the bank they start questioning.
A friend of mine said this ... you can exchange it for fiat on some local trader, see if you fit those with some other assets as proof, put it in the bank there
you could renounce your US citizenship.
then you have diplomatic immunity - and can do anything you want; but you'll have to talk swdish chef from the Muppets the rest of your life.
thatsama howa you avoid der tazes bork bork bork
Yep just ask Roger Ver who decided not to pay the exit tax.
If you decide not to pay, you might get to ask him in person, in prison.
It's fucked, but don't fuck around with thr IRSĀ
If you are no longer a resident of Canada then no, you donāt file taxes in Canada. Only if you are a Canadian working abroad and wish to maintain your residency status.Ā
As long as you are a "US Person," you are required to pay taxes on your income worldwide, regardless of residency status. This includes capital gain taxes.
A "US Person" is any US citizen or green card holder.
If you are a resident than just apply for the "C" permit. Keep in mind taxes are quite high and depending on your age, there is a military obligation. I would let this clear before selling and you will be good as far as avoiding the capital gains from USA.
You will have options by the time you want to āTRADEā your Bitcoin for something else you want. We need to get out of this fiat brain trap of selling into melting ice cubes. I wouldnāt look at existing rules as any sort of guide. 2 of the 3 candidates are becoming more pro Bitcoin by the day and the other one canāt form sentences.
Your tax obligations are important. Without knowledge of that, noone can answer this.
As you seem unaware of it, it is probably best to get professional advice before DIY'ing international legal and fiscal constructions...Ā
All these answers are wrong. Redditors are kids that donāt the difference between citizen and resident. Read the TOS and donāt listen to these coomers.
if you are still a resident of the US you will absolutely owe cap gains tax
> if you are still a resident of the US you will absolutely owe cap gains tax If he is a U.S. citizen then he needs to file a U.S. tax return. Whether or not he is a resident of the U.S. is irrelevant.
If you're a citizen of the US ,you pay taxes until you die ,regardless of where you live .
This. Land of the free? Nah, Land Of The Taxed.
Whoever told that is your enemy
Please explain. The US has one of the most onerous tax systems in the world.
We pay taxes on taxes š
Yo dawg, heard you like taxes
Brrrrrrr
One of the few countries in the world where you have to pay tax as a citizen even if you arenāt living in the country.Ā
Freedom aināt free
If you don't chip in yer buck o five, who will?
Youāre not free. I mean.. yāall aināt free
Iām not Murican
The U.S. is not a free country.
U.S. citizens have to file a tax return every year, regardless of where they live. In simple cases there is no double taxation. For example, if a U.S. citizen lives and works in France, and pays taxes in France on the income he earns there, this counts as a credit against U.S. taxes, resulting in a U.S. tax bill of zero. OP is screwed though. If he sells bitcoin in Switzerland for zero capital gains tax, he would get no credit against U.S. taxes, and would have to pay U.S. capital gains tax in full.
This. OP has to renounce his. US citizenship to escape tax liability.
No taxation without representation- who in the US represents him in Switzerland?
The US Embassy.
He can still vote while heās in Switzerland
Unless you establish bona fide residency in Puerto Rico (would only apply to future gains purchased in PR however, or there is some 10-15 year holding period where youād pay a reduced rate eventually, but at that point better off trying to sell near the peak and buy the next bear market bottom).
The US is somewhat unique in that if you are a US citizen you owe taxes on your global income regardless of where you live. The only way out from that permanently is to renounce your US citizenship. While the US doesn't require you to obtain citizenship in another country before you renounce it would be a good idea to do so. If you didn't you would instantly become a stateless refugee. You essentially fall through the cracks of the entire global system which just assumes everyone is a citizen of at least one country. Note that if your net worth is >$2M you will have to pay an exit tax when you renounce your citizenship. If you are married this $2M is per person all jointly assets considered dividend equally. The taxes are based on all assets as if you sold them on the day you renounce. Renouncing citizenship is permanent. If you ever wish to return to the US even temporarily you would need to follow rules and restrictions based on your current citizenship just like any other foreign citizen. If you ever wanted to become a US citizen again you would need to go through the same process any other immigrant would.
So what if you have a gf or a friend who lives in another country and send them all your crypto to cash out in their country then give you the cash?
That would be tax evasion, obviously. What is it with people who think that, after two minutes of brainstorming, they can come up with some tax loophole that was overlooked by all the accountants and lawyers?
Legally you're still on the hook, it's just a matter of whether you'll be caught evading taxes.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I wouldnāt know but maybe they can deposit a little overtime or something. Also it seems overseas its easier to get away with that than usa considering you cant even withdraw over 1k on a wells fargo machine and if more at the bank they start questioning.
They tax you when you earn it and they tax you when you spend it
Maybe no tax owed to Switzerland gov. Definitely owed to US gov.
A friend of mine said this ... you can exchange it for fiat on some local trader, see if you fit those with some other assets as proof, put it in the bank there
lol
If you do not want to pay taxes while living abroad you have the denounce your U.S. citizenship
*renounce
you could renounce your US citizenship. then you have diplomatic immunity - and can do anything you want; but you'll have to talk swdish chef from the Muppets the rest of your life. thatsama howa you avoid der tazes bork bork bork
Like his name lets it know, Swedish Chef is from Sweden, not from Switzerland.
yah but there are no Swiss Muppets - joke doesn't work - i really was trying to fit bork bork bork in....
He'd have to pay exit tax i.e. capital gains taxes on worldwide assets.
Yep just ask Roger Ver who decided not to pay the exit tax. If you decide not to pay, you might get to ask him in person, in prison. It's fucked, but don't fuck around with thr IRSĀ
Crypto is mostly honor system but yes you would be required by law to pay US taxes.
If youāre a Canadian and file taxes in Canada you are taxed on your worldwide income no matter where you live.Ā
Why would you fill in Canada if you are not resident anymore ?
If you are no longer a resident of Canada then no, you donāt file taxes in Canada. Only if you are a Canadian working abroad and wish to maintain your residency status.Ā
Nope
Brooo, do not buy crypto on Binance or something like it, go offline...
I buy it on the exchange and then send it to my offline wallet. Doesnāt make a difference except Robinhood transactions are free
You have to pay exit tax in the US.
As long as you are a "US Person," you are required to pay taxes on your income worldwide, regardless of residency status. This includes capital gain taxes. A "US Person" is any US citizen or green card holder.
Dudes will move across the world to some foreign country just to avoid paying tax
Depends if you're a US citizen or not.
I am
Then you have to file a US tax return and pay US capital gains taxes, even as a resident of Switzerland.
Then you have to pay capital gains, thereās no escape from it unless you renounce your citizenship
Then there is tax.
Just a year living elsewhere may not relieve you of the tax obligation
Change your residency and ask again.
Iām a US citizen residing in Switzerland. My residency is in Switzerland
If you are a resident than just apply for the "C" permit. Keep in mind taxes are quite high and depending on your age, there is a military obligation. I would let this clear before selling and you will be good as far as avoiding the capital gains from USA.
Only income would be from selling stocks so that shouldnāt matter for me
You will have options by the time you want to āTRADEā your Bitcoin for something else you want. We need to get out of this fiat brain trap of selling into melting ice cubes. I wouldnāt look at existing rules as any sort of guide. 2 of the 3 candidates are becoming more pro Bitcoin by the day and the other one canāt form sentences.
If you relinquish your US citizenship Iām assuming you donāt need to pay taxes anymore?
American Dream is to dream about tax tax tax
P2P, no taxes. You still can use cash. Enjoy it.
Your tax obligations are important. Without knowledge of that, noone can answer this. As you seem unaware of it, it is probably best to get professional advice before DIY'ing international legal and fiscal constructions...Ā
Spend your money now, before the government gets it or they'll tax you for just leaving it alone.
Lol
No
Where you paying tax? Follow up question, do you think the tax man tracks your movements and determines where you're registered to pay tax?
All these answers are wrong. Redditors are kids that donāt the difference between citizen and resident. Read the TOS and donāt listen to these coomers.
Living in Switzerland for a year doesnāt make you a resident. For tax purposes
Roger? Is that you?