Withdraw A Large Amount Of Money From Paypal

Will withdrawing a really large amount of money from bitcoin to your bank account raise any suspicions?

I'm just wondering if let's say I had like a million dollars worth of bitcoin and wanted to transfer it all to my bank account, will my bank even let me do that and would that raise any suspicions?

level 1

You will have to pay capital gains on it. Unless you really, really know what you're doing, especially in the US, don't try getting away with not paying the tax on it. Not unless you're OK with a tax evasion charge.

level 2

· 27d

is bored

Man, all those stories from when bitcoin was taking off and they sold millions in coins, then bought etherium (or bought back in to bitcoin) and then the value crashed. They were getting half million dollar tax bills and only having $20k in assets and it was already too late to sell the $20k and get an equivalent loss on the books for the same tax year as their gains.

Those poor idiots ruined their lives.

level 1

You can't literally withdraw bitcoin, you have to sell it. Once you sell it, you can transfer the proceeds from the sale into a bank account without issue. They will report it to the IRS, so you will need to document where the money came from and pay taxes on it.

level 2

Im not from the US but I reckon this situation would be the same in other countries

level 1

· 27d

is bored

Any bitcoin wallet that allows transferring to USD will also send you a tax form for you to file when you do your taxes.

Your bank also has their own thing where they log large transactions with the IRS, but that's just to cover their ass in case you were are ever caught trying to launder money. They won't have any tax forms for you.

level 1

Its all good if you pay income taxes.

level 1

· 27d

Not infected yet!

Your bank will certainly let you move money around. They won't stop you.
If you're in the US, then your transaction will be reported to the IRS on a standard form they use. All large transactions get reported. It doesn't matter if your rich grandma writes you a check for college, if you want to buy a car with cash you've withdrawn, or if you transfer your drug money from one account to another - every large transaction gets the same report.

level 2

What if I I transfer it to paypal, does that get monitored too?

level 1

It's definitely going to raise suspicions and there is a 100% chance you'll have to talk to a banker, confirm your identity, etc.

Doesn't mean you can't do it, though.

level 2

Thank you, fyi I sadly dont have a million dollars in bitcoin