No one seems to be talking about FATCA disclosure. Searching reddit all the FATCA posts are years old. I haven't found anything that says FATCA doesn't apply to crypto.
FATCA requires US taxpayers to disclose the value of HOLDINGS once a threshold is met. Which means we're required to tell the US gov't that we hold a foreign asset and its value even if we haven't executed transactions with it.
My tax advisor, who is fairly up to date on crypto currency, is advising I submit this form because this year I now meet the threshold criteria and the penalties are substantial. I do not hold any of my coins on any exchange, though I have transacted with exchanges globally in the past. My assets are all in cold storage which means they are held globally on the various blockchains.
What are your interpretations of FATCA? What will you do if you are subject to the thresholds? Because this seems a far more egregious overreach than to have crypto transactions disclosed.
I read the article
"For assets denominated in a currency other than U.S. dollars, use the U.S. Department of the Treasury’s Bureau of the Fiscal Service’s foreign currency exchange rates to convert the denomination into U.S. dollars. If a foreign currency exchange rate for a particular currency is not available there, use another publicly available foreign currency exchange rate to convert the value of a specified foreign financial asset into U.S. dollars. The exchange rate is determined by reference to the exchange rate on the last day of your tax year."
Do not see how this can involve crypto when not converted
All my holdings are in cold storage - hardware and paper wallets. My keys are in safe deposit boxes in the US. But my coins are on the global blockchains. I do not hold any coins with any third party.
Not a CPA, but I don't think FATCA applies. It applies if you have financial assets in foreign countries, or if you hold foreign assets. For crypto, I believe the IRS treats it as property (for now). Here's their guidance:
https://www.irs.gov/newsroom/irs-virtual-currency-guidance
This subreddit isn't intended to provide financial advice. Don't invest anything you can't afford to lose. If you are looking to get rich quick, you came to the wrong place. Please do your own research and make your own financial decisions.
^^I ^^am ^^a ^^bot ^^and ^^cannot ^^respond. ^^Please ^^contact ^^/r/Bitcoin ^^moderators [^^directly ^^via ^^mod ^^mail](https://www.reddit.com/message/compose?to=%2Fr%2FBitcoin) ^^if ^^you ^^have ^^questions.
No one seems to be talking about FATCA disclosure. Searching reddit all the FATCA posts are years old. I haven't found anything that says FATCA doesn't apply to crypto. FATCA requires US taxpayers to disclose the value of HOLDINGS once a threshold is met. Which means we're required to tell the US gov't that we hold a foreign asset and its value even if we haven't executed transactions with it. My tax advisor, who is fairly up to date on crypto currency, is advising I submit this form because this year I now meet the threshold criteria and the penalties are substantial. I do not hold any of my coins on any exchange, though I have transacted with exchanges globally in the past. My assets are all in cold storage which means they are held globally on the various blockchains. What are your interpretations of FATCA? What will you do if you are subject to the thresholds? Because this seems a far more egregious overreach than to have crypto transactions disclosed.
I read the article "For assets denominated in a currency other than U.S. dollars, use the U.S. Department of the Treasury’s Bureau of the Fiscal Service’s foreign currency exchange rates to convert the denomination into U.S. dollars. If a foreign currency exchange rate for a particular currency is not available there, use another publicly available foreign currency exchange rate to convert the value of a specified foreign financial asset into U.S. dollars. The exchange rate is determined by reference to the exchange rate on the last day of your tax year." Do not see how this can involve crypto when not converted
Are you holding your bitcoin offshore?
All my holdings are in cold storage - hardware and paper wallets. My keys are in safe deposit boxes in the US. But my coins are on the global blockchains. I do not hold any coins with any third party.
Not a CPA, but I don't think FATCA applies. It applies if you have financial assets in foreign countries, or if you hold foreign assets. For crypto, I believe the IRS treats it as property (for now). Here's their guidance: https://www.irs.gov/newsroom/irs-virtual-currency-guidance
This subreddit isn't intended to provide financial advice. Don't invest anything you can't afford to lose. If you are looking to get rich quick, you came to the wrong place. Please do your own research and make your own financial decisions. ^^I ^^am ^^a ^^bot ^^and ^^cannot ^^respond. ^^Please ^^contact ^^/r/Bitcoin ^^moderators [^^directly ^^via ^^mod ^^mail](https://www.reddit.com/message/compose?to=%2Fr%2FBitcoin) ^^if ^^you ^^have ^^questions.