Tax on Profitable Crypto Transfers between the US & India
Tax on Profitable Crypto Transfers between the US & India
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Ujjwal Gulecha · External communityPost link
External question — Personal Finance Stack Exchange
Author: Ujjwal Gulecha
Original post: https://money.stackexchange.com/questions/90793
License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/
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I am a non resident alien on F1 OPT living in the US, and have noticed an arbitrage opportunity when trading ETH [a cryptocurrency] between the US & India.
Assume the following:
I bought 5 eth for a total price of $1000 in US through coinbase which is linked to my US Bank account.
I then transferred the 5 eth to my brother in India.
He sold the 5 eth at $1200.
He then transferred $1100 to my forex card through which I withdrew $800(ATM limit) for 2 days.
Who is liable for tax? I really hope both of us aren't liable as it'll become double taxation then. I was thinking along the lines of that my brother pays the tax in India and then he sends money to me as a gift which is not taxable in US as it is less than $100k. I want to do everything abiding by the law.
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B. Johnson · External communityPost link
External answer — Personal Finance Stack Exchange
Author: B. Johnson
Original post: https://money.stackexchange.com/a/90844
License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/
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It seems the most reasonable interpretation of this transaction is that you sold the 5 ETH to your brother for $1100.
In this case, you have a capital gain of $100 (bought for $1000, sold for $1100), and its tax status is the same as if it had gone up and you had sold it the next day locally for that same amount.
On the flip side, your brother bought the 5 ETH for $1100 (his cost basis) and then sold them for $1200, also netting a $100 capital gain (taxed according however gains are taxed for him in India.)
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Ujjwal Gulecha Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/questions/90793 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I am a non resident alien on F1 OPT living in the US, and have noticed an arbitrage opportunity when trading ETH [a cryptocurrency] between the US & India. Assume the following: I bought 5 eth for a total price of $1000 in US through coinbase which is linked to my US Bank account. I then transferred the 5 eth to my brother in India. He sold the 5 eth at $1200. He then transferred $1100 to my forex card through which I withdrew $800(ATM limit) for 2 days. Who is liable for tax? I really hope both of us aren't liable as it'll become double taxation then. I was thinking along the lines of that my brother pays the tax in India and then he sends money to me as a gift which is not taxable in US as it is less than $100k. I want to do everything abiding by the law.
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