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With the passing of Arizona's law abolishing the taxation of gold and silver I think I may have found a way to legally avoid paying a capital gains tax on cryptocurrency investments. First you would buy crypto with USD like normal and once you're ready to cash out you would convert it all to Bitcoin. After that you would buy gold with that Bitcoin (I'm not sure about the law, but I'm assuming it would have to be done in a state where gold is still not considered currency and hence taxed). Since you technically haven't converted it into money yet you would then have nearly the entire value of your investments in gold. Then you would transport that gold into Arizona and exchange it tax free.
I'm still not 100% about the legality of this. What do you guys think? Would this work/at least be on to something or is this completely illegal?
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>>2083431
You would still have to pay a premium on the gold and then take another loss when you resold it. Also you would have to account for travel expenses. It might end up costing you more.
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>passing of Arizona's law aboloshing taxation of gold and silver
This only applies to state tax, not federal.
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>>2083442
Sure if it's in small amounts, but what if we're talking about 100s of thousands or even millions?
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>>2083442
Good Call Out.
The premiums aren't too high though. There's so much competition out there, you can buy and sell with less spread than you would pay in taxes. However, it is something to be considered
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Just cash out and move to a country that doesn't extradite if its that much
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>>2083453
this is the correct answer.
Not only is this only for state tax, it's only for state residents.
If you live the majority of the year in another state, you still owe tax to your state AND the federal tax.
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>>2083486
I love living in a state with no income tax.
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>>2083510
check to make sure they don't have capital gains tax
also no matter what remember you still owe money to the feds
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>>2083523
They don't, and yes I'm well aware that I need to pay federal, I'm the guy that told OP that what he was talking about only applied to Arizona state tax.
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I gotchu senpai just elaborating for people on here that aren't aware. there is a lot of bad tax advice on here from NEETs who have clearly never paid taxes before.
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Any other way to cash out crypto without getting raped by taxation?
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what is stopping me from going to a website like JMBullion and using BTC to buy gold/silver, receive it, and then go to a local coinshop/jewelry shop and getting cash?
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if you take 10k in cash across state lines, you need to report it
if you don't and are found with it, it will be seized as a civil forfeiture
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>>2083431
This is why Bitcoin is revolutionary. Once governments realise people are actually using Bitcoin to buy things they will be clueless wtf they can do.
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>>2083431
David?
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