First, I'm sad to hear what you've been through with that cop. Indeed, they don't really need a good reason to stop you or accuse you of something as they will always find something if they want to. I remember travelling with a friend home and he had his wedding recently so in his wallet there was a more generous banknote that was received as a gift at his wedding from some friends. So when the cop pulled him over and asked for all the documents, he noticed that banknote in his wallet. What did he do? He started checking out a lot of things on the car which are usually not checked by the cops but at the service, until my friend figured out he was trying to get that banknote out of his wallet. So having a pretty old car with lots of problems actually, he decided to give him what he wanted and move on. So disgusting!
As for the crypto thing, that scares me a bit since I am only used to work with Coinbase when needed. I am not a person who makes trades or transactions but only when I need fiat and sell a bit of what I have earned here over the years, but I had no clue about the 600$ threshold. Is this worldwide or just in the US? Also, if I move some of my crypto in there and sell for USD to get the USD then in my bank account, would that make it illegal? It will obviously be over the 600$ thingy they mention.
I honestly have no clue what documents are needed and what to do when I sell some of my crypto. I would never do that just like that but as life sucks in general and unexpected things happen, there seems like my time has come and I should take out some of what I have for a good reason, but currently, I'm stuck because I have no idea what are the steps to follow and if there is any way to avoid all the unneeded attention. No one enjoys a blocked bank account or paying a little fortune on taxes after so many years of ups and downs. It's stupid how no one cares about how many years you had to wait to finally enjoy a slice of the cake but when you cut it then lots of things pop at the door like paying taxes and fees that basically leave you with just a bite of that slice of cake.
I am not sure if it makes sense anything I said above and if you understand my message as English is not my native language but hope you do. 😅 And thanks in advance for any possible answers! I live in Romania btw 😁
I believe this is a USA law as the report goes to the American IRS.
It actually won't be over $600 profit because Coinbase doesn't know how much you acquired said crypto for. As far as they are concerned you made $0 profit because they have no idea what the cost basis is.
Getting reported to the IRS just means that a tax form has been sent to them.
Nothing discussed here is illegal.
If it happens Coinbase will tell you it happened.
You should pay your taxes correctly either way, but it's better to not be reported (in theory).
In America there are many ways to avoid taxes legally.
There are two main ones I know of:
Greetings to Romania!
Thank you for your reply! Greetings back to you!! ❤️