Bitcoin transfer
There’s a difference of almost 1k$ between price of single bitcoin in Indian exchange (zebpay) vs coinbase. My friend who bought 7btc in India wants to send it to my coinbase account so that I can sell it and we can share profits. I’m not sure how this would affect my tax computations. Can someone please explain?
What you're trying to do has a legal term for it... "Arbitrage" This isn't illegal, you simply report it as a short term gain. The tricky part here is to figure out the cost basis. When you receive the crypto asset from your friend, it is considered as a gift. I think the cost basis here would be = purchase price in India. Also, in the US, there's this thing called "gift tax" for any amount over 14k (and the sender is liable). So be mindful of all these things before proceeding. PS: This is purely my opinion, not legal advice.
Been there done that and stopped as above mentioned gift limit of 14k Made some good money on this trade... question is how will you get the money back legally! Even if you manage to do anything over 14k will be fully taxed
This would be a stupid move. Don’t do it. For you it’s an income and may change your tax bracket. And you will have to prove why your transferred into your account; which is a very risky business
Yeah. I felt the same and ignored it
Maybe you can pay your friend for the 7c, and then sell them at Coinbase, so that it’s just like a normal trade? Pay him a price that includes his part of the profit. I don’t know anything about if that’s legal or if it would work.
Authorities are tracking you and your Indian friend for Money laundering
Stop spreading FUD. If you don't have a helpful answer then STFU
Why don’t you suck d;)k and stop bossing around. Focus on keeping your h1b day job at Microsoft. Looks like you are gifting a lot of crypto. Crypto sale is illegal in India that is why your are selling it illegally in the states. Other than that suck it up