Can I buy crypto in the US for my friend who lives somewhere else? Will I get audited?

BulkSend

BulkSend

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Hi,

I live in the US right now. I have a few friends out of the country who live in different countries that only have access to PayPal. They are big buyers and they want to pay me PayPal so I can get cryptocurrency for them.

If I buy cryptocurrency in large amounts and send it to my friends, will the US government think I am doing illegal stuff? Will they audit me? Do I need to put this on my taxes even though I am not getting the crypto for myself?

Especially since this is in big amounts like 10K or more in a single transaction, could this be bad?

Also, if I buy from binance, will they ask me to verify my identity? Or can i just buy?

Thanks!
 
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How do you know these friends?
People like to use PayPal for BTC do they can chargeback.
I can’t imagine a 10k btc PayPal trade going well lol

fact is everyone has access to transferwise or some other transfer system.
If they say they can only use PayPal it’s likely a scam
 
James2774 said:
How do you know these friends?
People like to use PayPal for BTC do they can chargeback.
I can’t imagine a 10k btc PayPal trade going well lol

fact is everyone has access to transferwise or some other transfer system.
If they say they can only use PayPal it’s likely a scam
Click to expand...

oh they are trusted friends and family, they wont scam me. I am more worried about if the government will audit me or make me put this on my taxes. Do you know anything about this?
 
The whole deal sounds extremely sketchy, ask yourself why would someone only have access to Paypal? There are LOTS of other payment processors...and you can be 100% sure such large crypto transactions will draw at LEAST the attention of the IRS if you're using any common exchange (which, yes, will want to know your identity)
 
It’s definitely something that should be declared. If it happens to get notice then you’re highly likely to get a lot of attention, especially as it could be perceived as money laundering.
 
You'll need to verify identity for buying btc...

everyone have access to localbitcoins... suggest your friends to use that directly.
 
darkhound173 said:
oh they are trusted friends and family, they wont scam me. I am more worried about if the government will audit me or make me put this on my taxes. Do you know anything about this?
Click to expand...
I mean 10k is a lot to go through PayPal bit of its family you trust sure that’s on you.
Tax wise there isn’t anything to tax in a buy/sell like that, except technically any profit you made would be income.

If you buy BTC and the price increases, then you sell it for a gain, you will pay capital gains tax. However in your case that won’t be an issue this is just a straight trade there is no gain/loss/profit
 
use directly then pay you .

10k will get checked with Paypal it a flagged amount.

best do a direct bank transfer

local bitcoins, I am sure can use direct debit cards and credit cards, your friend can buy then give to you.

I am sure Paypal will fuck this up.
 
This can cause a lot of complications especially with PayPal being involved here.
 
The only way to stay out of the IRS is buying and selling face to face. Look at bisq network to find deals.
 
With 10k/transaction, your account might get locked by Paypal before you get audited.
 
i
darkhound173 said:
Hi,

I live in the US right now. I have a few friends out of the country who live in different countries that only have access to PayPal. They are big buyers and they want to pay me PayPal so I can get cryptocurrency for them.

If I buy cryptocurrency in large amounts and send it to my friends, will the US government think I am doing illegal stuff? Will they audit me? Do I need to put this on my taxes even though I am not getting the crypto for myself?

Especially since this is in big amounts like 10K or more in a single transaction, could this be bad?

Also, if I buy from binance, will they ask me to verify my identity? Or can i just buy?

Thanks!
Click to expand...
I CAN HELP YOU
 
Using such large transactions on PayPal will get the account limited.
 
I just want to add here, no one "only has access to PayPal", no one.
If you have access to PayPal that means you have a funding source for it ie your bank, and so Transferwise or any other transfer service is freely available, and cheaper most likely.
 
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