I bought it in the early days and moved several times due to security reasons. As a result, I’m unable to prove its origin. What would be a viable strategy to cash out?

  • OsrsNeedsF2P@lemmy.mlEnglish
    8·
    1 year ago

    Depends on your country. Consult a tax attorney, likely the situation would be that it counts as pure profit since you can’t prove how much you initially spent to acquire it.

    • jet@hackertalks.comEnglish
      5·
      1 year ago

      Don’t move the funds without consulting that tax attorney. You may be able to get long term capital gains consideration if you can show its been sitting for long enough.

    • macaco@monero.town
      3·
      1 year ago

      He may be able to prove he bought some, but then he traded back and forth and now has 1.27453x more. It’s a tax problem cause he may have skipped declaring gains in 2016, or worse , went into stable coin in 2018 after taking a big hit without any profits to be able to cover the undeclared 2017 capital gains… and so on

    • moneroworld@monero.townOPEnglish
      2·
      1 year ago

      Tax is not a problem at all, even if I have to declare the whole amount as pure profit. My main concern is a failed SoF check, which could potentially lead to a block on my crypto.

      • shortwavesurfer@monero.townEnglish
        2·
        1 year ago

        Then my advice would be Don’t seal it. Move it to something like Aave and take a “loan” out against it because then you don’t have to deal with the capital gains tax.

  • g2devi@feddit.nl
    5·
    1 year ago

    Depending on how serious you are about “getting government approved”, you can do a cross chain analysis on yourself and provide necessary view keys. To prove you bought 10K of Monero, just show that your bank account went down 10K and your Monero account went up 10K (at the past exchange rate). To show you exchanged 5K Monero for 5K Bitcoin, show that 5K Monero was transferred from your wallet at the same time 5K was added to your Bitcoin wallet. It’s extremely cumbersome and requires that you have access to all wallets/accounts and is extremely invasive on your privacy, but it can be done if you really want to. Personally, I’d agree about the tax attorney. Often there’s a way of “legitimising” grandfathered funds, but expected to be taxed to the max. Alternately, there may be a way of doing crypto loans so that you get the money without actually cashing out.

    • moneroworld@monero.townOPEnglish
      1·
      1 year ago

      A crypto loan would be a similar situation, since I still need to prove the origin of the crypto in order to get the loan. I bought it with cash, so I can’t provide any real proof that can fulfill a SoF check properly.

    • admin@monero.townM
      4·
      1 year ago

      Can confirm that this is the same person behind both accounts.

      I’ll also vouch for TheFuzzStones services, he was doing trades at the last Monerokon :)

  • popemichael@lemmy.sdf.orgEnglish
    2·
    1 year ago

    You could use a site like FixedFloat to slowly convert it to another coin, like Bitcoin. (You just have to use a VPN if you’re in the US)

    Then you can use something like Bisq to trade it for cash or card or whatever.

    You can also convert it to ETH, and send it to an exchange that doesn’t ask too many questions, like PayPal.

    I’ve done this last year with 90k with Bisq and 100k with PayPal and I had zero issues.

      • popemichael@lemmy.sdf.orgEnglish
        5·
        1 year ago

        Legally speaking, yes. Thankfully, it’s treated as selling property in this case. It’s not too bad to deal with.

        Though, if you use something like bisq or another p2p exchange, the only persons who will know about the transaction is the seller and the buyer.

        • moneroworld@monero.townOPEnglish
          1·
          1 year ago

          It is true, but if this amount of cash were to suddenly appear on my account, it could raise red flags.

          • popemichael@lemmy.sdf.orgEnglish
            1·
            1 year ago

            You could always use PayPal as eth or even the PayPal stable coin. So long as you don’t sell it, you can use the coin as you want and you are only taxed via sales tax. You don’t need to convert that way, and that way it stays property.

            Though I’ve done tens of thousands via PayPal and ACH’d it into my bank without issue. They don’t care as long as its less than 100k per week, according to customer service. Call them up and confirm, too, if you wish…

            Barring that you could use a p2p service like Binance p2p and trade it for cash. Take a trip to Canada to pick up the cash, then Los Vegas and win it big. That’s how an ex in law did it last year. Though he’s kinda nuts, it worked fine.

      • moneroworld@monero.townOP
        1·
        1 year ago

        It’s not a problem. My only concern is a failed source of funds check, which could lead to a block on my cryptocurrency.

    • moneroworld@monero.townOPEnglish
      1·
      1 year ago

      Good to see that someone with a considerable amount succeeded in cashing out without issues. Despite that, the PayPal method sounds scary to me. What can I do if they claim a SoF document while blocking my crypto and I fail to pass the check?

      • popemichael@lemmy.sdf.orgEnglish
        1·
        1 year ago

        It doesn’t work that way with PayPal. You receive it and it’s in your account. Then it just works like any other transaction. You can buy stuff with the balance, too. So there isn’t a need to cash it out all at once. I kept like 40k in it for a long time till I sold it all and banked it in less than a day.

        Just be sure to use the ACH as the fees are the worst part.

  • Justin_Ber@monero.town
    1·
    1 year ago

    You can try to convert them to another cryptocurrency via exolix.com, there are no upper limits on the exchange, so a large amount will not be a problem. It is a privacy-focused service and you do not need to register or undergo KYC verification to make transactions.

  • LemmyHead@lemmy.ml
    1·
    11 months ago

    I’d suggest, keep it and spend it where you can without KYC shit. There’s gonna be more ways for you to be able to spend it. If you urgently need the fiat, I guess go localmonero in parts.