Exit planning

[minicuzzo 255]

So I'm a hodler to $ 70-100 and I always thought that (if ever)we would need a few years to see those numbers.But more and more i started to read, that even the smartest guys in this chat, think that its possible to see crazy numbers at the end of the year and have very good arguments for that.So i started to realise that if that would happen, i'm not prepared.To all of you who have about the same exit points, are you prepared? I mean, what do you do? Do you talk to the bank and warn them that a lot of money is comming in and and that they dont need to call the police? ?Do i send my zerps on my exchange in advance? am i talking to a tax person? ect. ect.

Grateful for any information

[XRP_Squirrel 242]

I mean, don't go and do it now , but having a trusted one on one with whoever handles your accounts in your local bank won't hurt, once you know something is coming. Also make sure it is handled as discreetly  as possible, even when it comes to more bank employees being in the loop than necessary.

I guess the best tip is to not get overwhelmed, rather take 10 minutes more to double check the actions you are performing in order to cash out, than risk a shaky-finger-fuckup.

edit: Also, but this is only an assumption, I think you should be mentally prepared for a lot of KYC buggering of whatever exchange you are trying to cash out from.

Edited May 30, 2018 by XRP_Squirrel

[Guest]

Depending on how much money, I would speak with a financial advisor first. 

[Javim777 462]

 

12 minutes ago, minicuzzo said:

Do you talk to the bank and warn them that a lot of money is comming in and and that they dont need to call the police?

I do not think that you will have problems if you have your transactions records. 

 

[JoeXrp 84]

15 minutes ago, minicuzzo said:

Do you talk to the bank

I wouldn’t. XRP is a bankers coin designed to benefit banks trading with other banks and their banks and the banks that they bank with. If you tell them your fortune came from the trade of XRP they may demand to see your banking licence.

[JoeXrp 84]

But seriously, you don’t need to tell your bank you have money coming in. If they have questions they’ll contact you.

As @Javim777 said, keep your receipts in case you need to prove where the money’s come from.

And as @Loki said, speak to an FA - especially if you’re cashing out a fortune as there may be better options than parking all the money with your bank and spending it.

Also, if you can, over time buy back whatever XRP you can as the absolute ceiling price could well be worth it.

[minicuzzo 255]

3 minutes ago, JoeXrp said:

I wouldn’t. XRP is a bankers coin designed to benefit banks trading with other banks and their banks and the banks that they bank with. If you tell them your fortune came from the trade of XRP they may demand to see your banking licence.

Thanks for your reply but i think thats a very dark view?ripple would be one of the biggest scam companies in the world if this were true

[ringer2 995]

9 minutes ago, minicuzzo said:

Thanks for your reply but i think thats a very dark view?ripple would be one of the biggest scam companies in the world if this were true

Dark sarcasm. 

[Fezmo 2]

I believe Puerto Rico is the destination to be for a big exit strategy 

[aavkk 2,510]

I haven't yet had the conversation with my accountant or my wife for that matter but based on my initial research I'll likely be moving to Puerto Rico for 6 months and 1 day when we reach the beginning of my liquidation plan.  Research Act 22.  If you live in the US it very clearly states that if you have no closer ties to the US and you declare Puerto Rico home for at least 6 months and 1 day you pay 10% in capital gains for all the gains realized prior to living in PR (instead of 23.8% I believe).  All gains and income derived from investments after declaring PR home are completely tax free!  I'll probably set up all my passive income investments while still in Puerto Rico and then move back to the US shortly after.  

For me personally, Puerto Rico is a better option (compared to say Malta) because I can continue working at my primary source of income without interruption until I start seeing the income coming in from my passive investments.  I plan to continue headhunting after this expected windfall because I enjoy the challenge and keeps the mind sharp.  I'll just be very selective with the clients I choose and probably take several months off every year to travel.  

To answer your other question regarding banking relationships I would have all your proof of funds in order as well as all your transactions to all exchanges organized and laid out very easy to review before contacting your bank.  Id also speak with the exchange and get all the verifications necessary for a large cash-out as early as possible.  I personally plan to be very forward with the bank and up front rather than reactionary when they question and freeze incoming funds.  I will have an investment plan in place so these funds are in my checking account for the shortest amount of time possible.  I want this money working hard for me from day 1!  

[GoonerAdy 65]

I believe that when xrp is driven by utility and the price rises to the numbers you're talking about, you won't need to cash out, rather you'll be able to utilise xrp in and of itself, to fund whatever you desire! 

I see a time when converting it to fiat would seem a strange thing to do, why convert an inflationary currency into a deflationary one if you don't have to? 

Also, in the UK, tax is only due when any profit from cryptocurrency investment is realised. Therefore it makes financial sense, from a tax and inflation point of view, to only convert your xrp as and when required. 

 

[ButchMcDick 215]

I know Dutch banks have trails with cryptowallets, Rabobank and ING bank are far in the proces, i will wait till they go live and then i tranfer my zerps to the bank wallet

In Holland we pay 1,61% tax above € 978.000,- so i don't worry a lot

 

Edited May 30, 2018 by Dutch

[alanwatts 86]

25 minutes ago, Dutch said:

I know Dutch banks have trails with cryptowallets, Rabobank and ING bank are far in the proces, i will wait till they go live and then i tranfer my zerps to the bank wallet

In Holland we pay 1,61% tax above € 978.000,- so i don't worry a lot

 

I think you misunderstood this a bit. As of 2017 there are now 3 brackets. The more savings and investments you have the higher the percentage can be. A part of the assets is taxed based on a fictitious profit of 1.63% and a part (or all the assets if you fall in the 3rd bracket) are taxed based on a fictitious profit of 5.39%. The tax rate is still 30%. 

Source: https://www.expatax.nl/box-3

So you pay 30% tax on a fictitious profit that can be between 1.63% and 5.39%.

Still a very low tax, but not as low as you initially stated. 

[RegalChicken 33,410]

8 hours ago, minicuzzo said:

I mean, what do you do? Do you talk to the bank and warn them that a lot of money is comming in and and that they dont need to call the police?

yes, depending on how much money you're talking, but if it's over $2-5k you'll likely need to let your bank know. this is also a reason that while we all may hate Coinbase, they might be a good exit partner because a large sum of fiat may be safer there than many of the other exchanges, short term.

Coinbase offers FDIC insurance up to $250k. so lets say you have $1,000,000 worth of XRP on your cold storage of choice. It might be smart to cash out say $250k at a time in BTC, move it to coinbase and hold it as cash, where its safely insured until you can transfer it over. 

 

Quote

Cash Balances

U.S. Customers
Coinbase stores all customer fiat currency (government-issued currency) in, custodial bank accounts, or in U.S. Treasuries. 

Non-U.S. Customers
Coinbase stores all customer fiat currency (government-issued currency) in segregated, custodial bank accounts. 

Cash balances held in your Coinbase accounts belong to you- not Coinbase. 

If you are a United States resident, your Coinbase USD Wallet is covered by FDIC insurance, up to a maximum of $250,000.

 

Gemini, is also FDIC Insured, so you could also send $250k in fiat there for safe keeping since your coinbase withdrawal limits won't allow you to pull $500k immediately. 

 

Quote

FINANCIAL SECURITY

We are a full reserve digital asset exchange. Customers may only trade from pre-funded accounts.

All customer USD fiat funds are held in an omnibus account at an FDIC-insured bank located in the US.

All customer fiat funds are segregated and legally distinct from our business and operating accounts.

All customer USD fiat funds are eligible for FDIC insurance, subject to applicable limitations.

https://gemini.com/security/

 

however other exchanges like Binance and Bittrex aren't insured as far as I know.

[ButchMcDick 215]

1 hour ago, alanwatts said:

I think you misunderstood this a bit. As of 2017 there are now 3 brackets. The more savings and investments you have the higher the percentage can be. A part of the assets is taxed based on a fictitious profit of 1.63% and a part (or all the assets if you fall in the 3rd bracket) are taxed based on a fictitious profit of 5.39%. The tax rate is still 30%. 

Source: https://www.expatax.nl/box-3

So you pay 30% tax on a fictitious profit that can be between 1.63% and 5.39%.

Still a very low tax, but not as low as you initially stated. 

But 30% of fictive profit of 5,39% is still 1,61% tax