How can I avoid paying gambling taxes at Coinbase?

Discussion in 'General Bitcoin Gambling Discussion' started by Toast, Feb 5, 2019.

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  1. Toast

    Toast Member

    So I had a pretty good run over the past couple of months that was topped off by the Patriots winning the Super Bowl again and I now have over $20,000 (sorry for bragging) in my Bovada, Nitrogen and 5Dimes accounts. Before I stupidly lose it all, I would like to withdraw the money but I don't necessarily want to pay tax on my winning in the United States if possible. My exchange is Coinbase and it's my understating that if I sell my bitcoin there and deposit it in my bank account, that they will automatically report my to the IRS and I will receive a 1099-K. Is this true?

    Is there any way for me to avoid this?
     
    Toast, Feb 5, 2019
    #1
  2. Humble Servant

    Humble Servant Active Member Staff Member

    Maybe you could withdraw it in increments to various bitcoin debit cards and withdraw as dollars from an ATM or spend it online. If you only put a few thousand at a time on the card, it probably wouldn't be flagged as anything suspicious that needs to be reported to the IRS.

    Here is a relevant Coinbase tweet published today...

     
    Humble Servant, Feb 7, 2019
    #2
  3. Humble Servant

    Humble Servant Active Member Staff Member

    This week Coinbase bought a surveillance company called Neutrino that is used to do analytics and track bitcoin payments so be careful using this company if you are planning to do anything a little shady...

     
    Humble Servant, Feb 20, 2019
    #3
  4. Jake21

    Jake21 Member

    Coinbase are in bed with regulators and governmental agencies more than any other exchange. You have to assume that every transaction you make at Coinbase will be reported eventually to your local tax authority. If you want to avoid tax, better to use BTM, Paxful, Local Bitcoin, Hodl Hodl etc.
     
    Jake21, May 10, 2019
    #4

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