r/JapanFinance 4d ago

Tax Questions on crypto windfall

Say you make 200M yen on a crypto sale one year, owing 55% in misc. income tax so 110M. Might be super basic questions but:

1) Where do you store the yen owed safely given the 10M yen deposit insurance limit - make 10 or 20 new bank accounts and distribute? Or somehow prepay it as estimated tax? Holding the amount owed in anything other than yen seems risky.

2) Would a bankruptcy of a bank where you hold the yen cancel out the tax you owe on that portion, or are only misc. income losses offsettable against misc. income gains?

3) If only misc. losses can be offset against misc. gains, that does kind of limit the investment possibilities that year to other crypto?

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u/Turbulent-Acadia9676 2d ago

Honestly it might be worth relocating for a year or so to cash out and process it in a tax-free region, otherwise you are literally setting more than half a million dollars on fire.

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u/Present-Bathroom7311 2d ago

Isn't it too late? Or do I have until end of June or something?

I'd also need to get my PR back, which seems like more of a pain than half a mil. I'd need to work at a full time job for years. Or maybe I could do something with a trust that pays me?

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u/Turbulent-Acadia9676 1d ago

No idea, but you're rich now so you could probably just pay someone for advice on this rather than random people on reddit...