Hot answers tagged

202

It's a scam. It's called a money mule. Typically the way this will work is that the scammers will make a fraudulent money transfer into your friend's account. Your friend will convert the funds into Bitcoin and send it off to the scammers. After a few days or weeks, the bank will figure out that the original transfer was fraudulent and come after your friend'...


192

I think it is likely that your “friend” is doing something illegal, and that she is putting these payments in your name to avoid getting caught. You may be being used as an unwitting money mule. I recommend steering clear of this. Tell her that you will no longer pick up any of these payments for her, whether or not your name is on them. Giving your ...


163

Apologies for the brevity and avoidance of in-depth discussion in this answer, for simplicity's sake. To understand Bitcoin and its failures, we must understand what a 'currency' is, and why it is important. Prior to currency, people bartered for goods - I give you 4 chickens, you give me a goat. What if you don't want my chickens? How do I get my goat? ...


161

The existing IRS guidance in the US related to bitcoin indicates it will be taxed as property. You'll sell your coins then when you file your taxes for that year you will indicate the dollar value that you sold as a capital gain with a $0 cost basis since you can't prove your initial cost. You can use a block chain explorer to get an idea of when the ...


141

Absolutely a scam 100% chance. This is one of the most common scams out there. Here's how you will get ripped off. They send you a check which will deposit in your account Seeing the deposit went through everything looks peachy, you buy and transmit bitcoins. The check bounces in a few weeks and you are out the money or owe the bank if that gives you a ...


92

Barter is a taxable event. You would owe taxes on the full fair market value of the Bitcoin the moment that you trade housing for it. Things would work the same way if you bartered baseball cards or a car for rent. Later, if it appreciated, the appreciation would be taxed as capital gains. But the original receipt is regular income.


87

It’s a money-laundering scam, and your friend is likely to get into serious trouble, and possibly lose a lot of money, if he takes part.


69

Here's the question, what I don't understand and I haven't been able to find the answer to, is if I own some bitcoin, how does that help me buy groceries at the market, or gas for my car? The market I go to doesn't accept bitcoin and neither do the gas stations. If I can't do that, how is bitcoin worth anything to me? The market you go to probably doesn't ...


65

Yes, it’s a scam. There are red flags all over it. Ask yourself whether you really think a huge multinational like Nissan would work in this way.


58

Document how you came to have the stuff in the first place. First to defend against potential government inquiry; and second to establish that you held the asset more than one year, so you qualify for long-term capital gains rate. I wouldn't sell it privately all at once, if you can avoid it. If you can prove you held it more than a year, you should ...


57

So just to be clear, she gets so many of these ~$500 transactions she can't even make the time to show up and collect them all? Yet, she still holds down a day job cutting hair? You are on here asking if this is strange because well, it seems very strange. "Bitcoin" something something is a convenient way to explain away strange income sources. It's ...


52

Market cap doesn't mean that much money went into the system. Money in equals money out over time, and is not directly tied to market cap, which can actually be lower if price drops far enough. These concepts are the same for all traded assets, such as stocks, bonds, and commodities. "Market cap" is simply the current price times the number of shares ...


52

How is Bitcoin useful as a currency if so few services accept it? That's the point. It's not useful as a currency because so few services accept it. So far, it has some other uses - international transfers, storage of value, speculation object. Just because it was intended to be a currency doesn't mean it's useful as one. Like gold. Gold is not useful as ...


49

I contacted a lawyer, told to talk to Dept of Labor, DOL said they will not get involved that this is between my and my employer. Advise? What employer? You are 100% not employed by Nissan Motors....


42

Your friend should go to a lawyer. The lawyer can then make a deal with the government where your friend testifies as to the activities. Your friend may be asked to communicate with his "employer" to get them to do more illegal things. Or required to turn over his email, etc. to the authorities so that they can communicate with the "employer" and get them ...


34

What bank account are you supposed to cash the check into? My guess is "yours", and that's a complete and utter proof of scam. There is absolutely and categorically no way that a reputable company like Nissan would have checks cashed into anything except a business account of Nissan's. It would be illegal and stupid to do so, and no legitimate company ...


28

BTC isn't considered a currency so it's taxed as an asset under capital gains tax This statement is wrong. Let's say you charge 1 BTC rent on Nov 1st. From the IRS standpoint your earnings are the dollar value of 1 BTC on Nov 1st, so that's approx $6k. You will be charged income taxes on $6k. Now, if you keep your Bitcoin until the end of the year and ...


27

This is definitely a scam Most electronic fund transfers are reversible, whereas bitcoin transactions are final. Your friend will successfully receive the money and transfer it as bitcoin. When the original transfer is reversed for being fraudulent (or even worse proceeds from an illegal act) the money will be reclaimed from your friend's account. They will ...


26

In 2014 the IRS announced that it published guidance in Notice 2014-21. In that notice, the answer to the first question describes the general tax treatment of virtual currency: For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. As it'...


26

You need to meet a woman (or man if you are in a state that allows same sex marriage) who has a carried forward loss or other loss that exceeds the $3K/yr they can take against their own income. If they had a loss of $200K some time ago, and are taking $3K/yr, they may still have $100K they can offset with you. Marriages have been based on less than this.


26

It's not really Nissan. The bank will put a hold on all but $100 of the check amount. After a few days, they will release the money, conditional on you making the money good if the check later bounces (read your bank agreement). You will go "haha, check cleared, money in the bank!" You will send the money onward via Bitcoin, which is irreversible. ...


22

is this legal? No, in most places. You are likely participating in money laundering, fraud, tax evasion, or other sorts of crime. You are acting as a money mule. It is bad enough if you receive no monetary reward but if you take a cut of the proceeds of crime you are more likely to be deemed complicit in those crimes. Can I get into trouble doing this? ...


17

Uber, FB and Airbnb are facilitators, since they, well, facilitate connections between the consumer and the provider. Alibaba and Amazon are in that role, too.


17

Bitcoin or any other crypto currency is an incredibly volatile place to put your money. Its value fluctuates significantly, increasing its risk, and its value proposition is entirely unclear. In my opinion,the only true value of bitcoin is (a) hype; and (b) a tool for money launderers and organized crime. That is only my opinion, but to buy an asset I ...


16

where did all this money come from? Investing in a currency, whether it's bitcoin, gold, USD, or another country's currency, is a risky investment because the average trader loses money (after transaction fees). This is not true of the stock market, since successful companies actually produce wealth. So in short, money made from selling bitcoin comes from ...


16

It actually works a lot like gold. You even mine it in a similar way to gold: spend some regular currency for the mining equipment and cost of running the equipment, and hope you mine enough to make it worth it. (Sidenote: These days it's quite difficult to mine bitcoin at a rate that doesn't cost more in electricity than you make from mining) When it comes ...


15

1) Document that you held the bitcoins for more than one year. This should not be particularly difficult. Since you haven't moved the bitcoins, you hold the key to an address that has held them for more than one year. While this isn't absolute proof, it should be sufficient. 2) Since you can't document how you bought them easily, you can just assume a tax ...


15

You need to get yourself a lawyer now! Your name is on the money transfers. Your face is probably on surveillance cameras picking up the money. Worst of all, it sounds like you did a lot for her, which makes you seem more like a partner than someone doing a favour for a friend. It's possible the police are already investigating, or it could take months or ...


14

I think you are misunderstanding how capital gains work. It's not about the difference in value between the property you're selling and the property you're receiving at the time of the exchange. It's the difference between your basis in that property (basically its "initial value"), and the value of the property you get in exchange. We don't have enough ...


14

Hire an accountant. Now that you're a millionaire, you're going to want to get a professional to do your taxes for you, because you have more to lose if you mess it up. If you're lucky the accountant might even give you better financial advice than you'll get from random strangers on the Internet.


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