Crypto Gains - USA

taotao said:

Hypothetical Scenario: You're a US citizen who flipped a small, completely anonymous five-figure starting capital into eight figures+ through trading.

Would you cash out and pay taxes on it? (37% Short term capital gains)

Yes and then live happily every after and never have to watch over my shoulder.

taotao said:

Or are there smarter ways to structure this offshore entities, trusts, or other legal strategies? After all, anyone could technically claim it. The funds are tied to nobody in this scenario.

The IRS is nothing to mess with and I would always say pay what is owed to them if your a US citizen.

If you went from 5 to 8 figures legalize it all. You still would have made a small fortune anyway.

Seek professional tax advice if your talking IRS here i.e.

wiggamlaw.com/blog/didnt-report-crypto-tax-return/