3 Simple Crypto Tax Hacks The IRS Want You To Ignore

[@richg657]

@21:16 Mark mentions the first question on the 1040 tax return for is, "Did you buy, sell, trade any sort of cryptocurrency in the last year". This is somewhat misleading because it doesn't state it in that way. Last years question #1 is states as, "At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?". So, if you purchased, say Bitcoin, and you have held it the entire time and didn't cash it in, then you would answer NO to this question. I think he's directing this towards "traders" but still, it doesn't state "buy".

[@Andolem]

Trump plans to eliminate crypto capital gain taxes, so I'm not selling my cryptocurrency until 2025.

[@raymondyoungcpa]

"Did you buy, sell, trade any sort of cryptocurrency in the last year" was the first phrase that went on 1040s. The new one is "reward award payment sell exchange dispose"

[@JesusisLoveLightTruth]

I am LOVING this. Now, I just need my 10,000% gain on my crypto!!!

[@pooroldgreyhaireddaddy]

Thanks!

[@hootans.4293]

The dollar generally loses between 20% and 30% of its value over a 10-year period due to inflation. With current economic conditions potentially accelerating this depreciation, paying taxes in one lump sum now and investing that money could be more advantageous than spreading out payments over time. Inflation can erode the purchasing power of your savings more quickly, and this long-term reduction in value can be likened to a form of taxation, as it diminishes the real value of your money

[@thebobthebobanite6287]

I think the point is you can actively buy and trade in the CRUT without having to pay any capital gains tax.

[@ho7ly77]

This was by far the best explanation I’ve seen. Thank you very much bro

[@amerchiro11]

Please tell us how much money in gains to consider CRUT?

[@CaShThVkING]

10 cents

[@bfdklfs]

Is there a way to transfer already purchased crypto into a Roth without selling and rebuying?

[@TripleOG_]

No. IRS already thought about that and it’s called a prohibited transaction. Prohibited transactions are certain transactions between a retirement plan and a disqualified person. If you are a disqualified person who takes part in a prohibited transaction, you must pay a tax.

[@jeremygiaco]

itrust capital supposedly has such a fund you can roll your 401k or ira into .

[@JohnConnors-d2s]

HOW TO TAKE FROM A COINBASE TO A ROTH?WHAT IF YOU HAVE A ROTH WITH FIDELITY OR CHARLES SCHWAB?

[@johnbrady7686]

problem that i see is that we are exchanging capital gains tax for income tax. high earners would prefer to take the capital gains tax than income tax

[@paulwjohnson8571]

in step 5 of your example did you say that tax has to be paid on the 120k payout per year?

[@ianrooney2275]

The problem with all of your loopholes is that in every example you no longer have your coins in your own wallet. The whole point of crypto is to hold your coins in your own wallet that nobody can seize and that you can take wherever you want so that nobody has control over your wealth except you. Your loopholes could be broken with one new law written in and the coins could be gone. Keeping your coins on cold storage you can just stay on chain until taxes are actually fair, and if they never become fair you can just leave and bring it all with you and go somewhere else.

[@seacow2001]

What his strategy is is to avoid tax when you sell. If you are holding the coins in your own wallet you will not be tax and we would not have a problem. Price will go up and down though so what you have you must be sure it will stay the same or always go up or else you could be holding on to dead coin if you don't take profit.

[@borngreat8962]

That’s not true. All the strategies you hold your own private key (except for the simplified ROTH IRA with Gemini) but you can avoid that as he mentioned by setting up a self directed ROTH IRA or 401k and then an LLC inside that ROTH can hold your crypto. With this LLC, you can have as many hardware or hot wallets as you wish and your LLC / ROTH own and control the private keys.

[@ShadowRealmLegacy]

Self sovereign individuals hold their property in their name.

[@ianrooney2275]

@@borngreat8962 yeah meaning you don't own or control your own private keys, your shady tax loop hole that could get closed by the gov holds them.

[@danrolla3352]

You control the trust, you control the wallet.

[@LoriPHarris]

Love your channel Mark!! I always learn so much from you and your associates every time i listen! Thanks for your attention to detail!

[@martinlutherkingjr.5582]

Can you setup a CRUT while retaining the private keys?

[@RoyAllisonDavis]

Good question!

[@thankdrew1173]

If you own the CRUT you own the keys.

[@martinlutherkingjr.5582]

@@thankdrew1173 But do you hold the keys?

[@G..G..]

Yes

[@magic0423]

QUESTION: If I create a CRT, will the money I receive in payments be considered earned income or investment income? As a retired individual, that has not yet reached full retirement age, will the income from the CRT effect my Social Security retirement payment if the payments exceeds that maximum earned income allowed???

[@CryptoRich2024]

Great question. It does appear earned income as he states it.

[@shawn071]

So glad my KZbin algorithm find you!!!

[@stevenabigail553]

You can also mint your own token and use it as a parking lot. Taking your assets safely off the market without cashing out. NOT ADVICE DYOR.

[@patrickpaes6653]

what can you tell me about XRP, Ripple or XLM an how to buy and protect it

[@raybarlow575]

Can I move crypto from my wallet to the Crypto IRA or Roth Crypto IRA????

[@zenquester3896]

So for strategy number 1, what if you live past 20 years?

[@martinlutherkingjr.5582]

20 years or when you die, which ever is longer

[@michaelgood9218]

Thanks for the nice explanation. Like you said, CRUT distributions are taxed, which is higher than Cap Gains. Sure, they are off-set by the charity deduction for 5 years but eventually you'll be paying even higher taxes on your gains. I'm not so sure the numbers work out in your favor.

[@livingdavidaloco9641]

That's what I'm seeing. $120,000 income. 25% tax per year, just say $20k, plus $20,000 per year in life insurance? So, $40k per year, then the $8k lawyer startup fee. In 7 years you'd be around the same tax bill as when you started. Oh, and charity gets the rest of that money. So, you turn $1.2 mill into, say, $10 million in 20 years...and that $10 mil goes to charity, you've got nothing left from all your effort. OR you pay the $300k in taxes, have $900k to invest yourself. $900k just in the SPY for 20 years would turn into $6.5 million...and you can give, say, $500k to charity instead of $6.5 mil. Maybe I'm not seeing something, but CRUT seems like it only makes sense if you don't expect to live more than ~10 years.

[@Freshmint2091]

Do I get taxed when I transfer my stock to IRA account from my regular trading account?

[@ahavahtobah]

great suggestions! is there a CRUT equivalent in Canada? ty

[@Mreisz1]

Do you have to donate your crypto before you sell it or can you just make a donation from cash that you sold your crypto? Will this work the same way?

[@jwillard911]

Is this for the rest of your life? Or 20 years? How is the tax on your % taxed? Ordinary income?

[@RosemaryBlackwell]

CRUT is not really saving you a lot. Especially after you pay about $5000 every year in administrative fees and $3000 for tax returns (those K-1s are a headache). And then every distribution you get is taxed...Only people making out well here is the lawyers and CPAs and the charities, not the taxpayer.

[@richardsummers6827]

On strategy #2, why a Roth and not a SEP?

[@kayb4995]

Tax on Swapping assets is one of the hugest scams in the entire tax code. You never realized any income. But they just get to pretend you did. Why. Because they get to extort more money that way. It’s so simple

[@SasSaga]

Is your company covered by FDIC? Love your videos, Mark!

[@fluffyhoundog]

How about discussing the CLAT?

[@junejewell6004]

Don't you pay regular tax rate on the annual distribution rather than capital gain rate?

[@gatorbite9816]

That scenario would be long term capital gains tax no? If you bought way back when and are now selling it should be considered long term capital gains tax no? 15%?

[@borngreat8962]

Long term capital gain is 1 year and 1 day and it’s not fixed at 15% could range from 0-28% depending on your tax bracket

[@Carol-c9u]

How much money do you need to open a crut?

[@crypto4granny]

Wow, such great information... blew my mind! 🤯

[@umairkhan5157]

Can you please make a video for people who are in australia?

[@kasmstamps1897]

Initial enquiries seems need to set up a self managed super fund SMSF. From there can setup a crypto account. Drawback is that yearly fees for SMSF are around $4k-$6k so really need a substantial account to make it worthwhile. NFA

[@scotts595]

Probably unable to use existing revocable trust for this application.? Can you still add an IRA if already retired?

[@Cryptodegen2A]

You must be employed and earning income to open or fund an IRA.

[@NGF-Life]

Great video. I have a question regarding to the trifacta. Do you recommend adding a WY or DE LLC as the parent company before the revocable living trust? THe layout would be passive LLC and operation LLC all report up to a WY LLC and then WY LLC goes to the RLT 1040? Thank you so much for your videos, it is very informative.

[@jonathanyeh3835]

Can this strategy be applied to the capital gain from a real estate appreciation?

[@yaakovgurzhiev4121]

Who are your tax lawyers that can help, where do you find them? Your website is not showing them?!

[@bazrain4008]

What can we do in Australia....anyone have any similar info for AUS

[@adamfutey2854]

Is there a wage limit for CONTRIBUTIONS to crypto Roth like normal Roth

[@martinlutherkingjr.5582]

What is a “crypto roth”?

[@Lulu-kt6gr]

What do you think of cardano?

[@Post_Oak_]

How does SD-IRA work with buying land as an IRA?

[@kenmonk2983]

I dont suppose the CRUT stradegy works for a Canadian?

[@thisproductivelife8250]

what if for example you accidentally misallocate the crut? For example buy all kind of property and expensive luxury items. there’s no money left for charity. What happens next? Will IRS track you down for not donating to charity

[@billkemp9315]

This is interesting and helpful; thank you. Why a 20-year limit? What happens when life extension becomes a reality?

[@ReedMyresDavid]

Now that bitcoin etf is approved, What is the best strategy to enter crypto trading for someone with more or less than $5,000 to invest?

[@WingerAndres]

As a beginner, it's essential for you to have a mentor to keep you accountable. I suggest Miss Stephanie Aaron Trentham is extremely good on that. She is really good on what she does, Now I can pay so many bills because of her help.

[@Vlad-ei3bs]

This is correct, Stephanie strategy has normalized winning trades for me also and it's a huge milestone for me looking back to how it all started.

[@Jamiewhite663]

Yes, I agree with you. Her platform is wonderful and her strategies are exceptional.

[@Holler-cy8vn]

The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional but it's very advisable you make use of professional.

[@ReedMyresDavid]

Please how can I reach out to her easily?

[@jorgebitcoin3034]

Thank you Mark, Excellent!! You’ve given me back my hope! Haha. Quick question: for strategy #1, you only mentioned crypto. Can this strategy also be applied to stocks or real estate investments? I'm in my 50's and I own some BTCs Stocks etc. I have a full time job and I love trading and I'm about to invest in a property. What do you think is the best strategy for me? Thanks again!!!

[@559mile]

Hi Mark- thank you for this information! I have a question about strategy #2. Over twenty years ago when I left my first job, I had a small amount in the companies retirement fund and I transferred it to a Traditional IRA (I didn't understand the difference in implications back then between Roth and Traditional). It was a small amount and grew somewhat over the years. This spring, I changed the fund my Traditional IRA invests in to one of the new Bitcoin ETF's. If I make some money from cypto trading- can I put some of it into the traditional IRA for a tax break? (I assume since it's a traditional and not a Roth I would have to pay some taxes when I go to withdraw from it at retirement but didn't know if I could still have a tax break from it)?

[@CGAZ66]

My understanding is if you work for an employer that has a 401k then you are limited in a traditional or a Roth IRA for allowed contributions. Now if you have your own business that is all different. Or am I wrong ?

[@webbezzy]

How much is the 120k annual distribution taxed?

[@paulgomez3318]

Probably based on your income bracket.

[@Deadgruven]

Does this work for new york state residents

[@JoshSpace]

Ive heard that an LLC can invest legally anywhere in the world. No US-based CEXs list the asset I’m heavily into. Can I use a VPN to create an institutional wallet account on an CEX in another country that does?

[@borngreat8962]

Even with an entity (LLC, corp, offshore corp) the exchange will still verify the Identity of the owners and your US ID would suffice. Easy way, Get a 2nd citizenship / residency or for $300 get a much easier Palau digital residency and then pair that with your entity.

[@amazjunelee]

This is amazing content 😮 so generous!!! Will be calling to work with you 👍🏻💎

[@RainCheck8007]

Can this strategy apply to forex XAUUSD short term gain?

[@shofarhagadol4698]

Mark, an organization owes crypto to me. Can I have them send the crypto to my CRUT, instead of me? They would get the deductions and I get income, correct?

[@Josue-e9j]

I’m 18 and have five figures in crypto is there any way to save taxes as a teen?

[@KingPriyom]

you need to hodl kiddo. your future self as a billionaire will thank you

[@Power_Serge]

What’s the rate distributions from the CRUT are taxed at?

[@Lulu-kt6gr]

After 20 years you have to give away the whole account? What if you’re still living?

[@patmagic3301]

Can you do the Roth option if you’re retired?

[@hopepantazis4508]

Thank you for this perspective. We are in the dark ages in this country with respect to our news media. It is so pedantic and disempowering.

[@brianfong3954]

How do I find a Tax person like you to assist me with my Crypto in my area ?

[@MarkJKohler]

Hello! Thank you for reaching out. To get in contact with a professional on our team for Tax Services, you can visit: taxadvisornetwork.markjkohler.com/ For Crypto, you can visit: directedira.com/appointment/ Best of luck to you! -MJK Team :)

[@andrefarinha419]

Is this the same in europe/Portugal?!

[@shdog56734]

Can you put part of your out investment in a crut?

[@Chaka2479]

Bitcoin is the answer!

[@XRPGOLD]

Xrp

[@isismelchizedek6325]

Can I move from BitcoinIRA to Gemini?

[@NatureLovingIntellectual]

Being tax exempt is beautiful 😎

[@philgroves7694]

No, it's actually a crime against you and your fellow citizens. You're not thinking it through.

[@NatureLovingIntellectual]

@philgroves7694 Deceiving people into believing they owe a tax is the crime.

[@philgroves7694]

@@NatureLovingIntellectual Sounds like you're not fond of a functioning, interconnected society. Do you even understand what taxes are used for? Or do you just have vague opinions, based on blabbery gobbledygook that some sleazy windbag preached at you? I mean, yeah, you're welcome to your opinion of society and government not being worth you paying taxes (or using loopholes to cheat), but I'm sure glad I don't have to rely on you as a wing-man, or to have my back when times are crummy ... you just seem so ... untrustworthy. Of course, that's just my opinion, man.

[@miltonorellana4557]

​@@NatureLovingIntellectualit is a crime to deceive people into believing they own a tax on money that was already taxed. But the IRS goes after those who don't pay and there is nothing that can be done against them. Crypto and stock tax is a joke.

[@scottisizzle]

You forgot to deduct the accountant and lawyer fees from the pie. lol...

[@JakeSlaughterr]

Cost way less than just selling 😂

[@michaelsteven1090]

yup..There are so many tricks they use (accountants) to take huge fees..

[@CASHFLOWKING01]

Can you do this UK ?

[@marcokawar5459]

Can u do all that after u bought bitcoin?

[@alpham777]

As I always say, it’s amazing what’s legal when you have enough money.

[@ramonnoodles784]

What about seniors or people on SS...the crut wouldn't work

[@freespirit4726]

Gemini charges very high fees

[@brandonb5818]

How about just saying fuck the govt and taking that $1.2M to another country and never worrying about the USA again?

[@mramirez8136]

😂

[@scox7760]

You could also relo to Puerto Rico and live there 51% and pay no federal tax

[@miltonorellana4557]

You would have to cash it out after you get there because if you do it in the US, they wont let leave until you pay the last cent they think you owe

[@SasSaga]

After BLOCKFI debacle I’ll never trust another outside holding company (like Gemini), UNLESS they are FDIC insured….

[@vassemkhan6011]

Vematum's technology is next level! So glad I found this early.

[@mustardonthebeet]

he didn’t talk about that but ok

[@gabakbusiness]

what about living in puerto rico no income taxes?

[@JosephHarounian]

The phone number you posted does not work. What is a good number to call or email?

[@MarkJKohler]

Thanks for catching that! To reach our member support team you can call: [phone] Looking forward to hearing from you. -MJK Team

[@luisperalta5440]

Great advice, Mark, but it's funny how the IRS can't even pass their own audit, not once, but on 7 different occasions 😂.

[@lorrainee4841]

Can you hold crypto in a crut?

[@ericgallup7927]

The video covers how to do it. 😉 Watch it all.

[@lorrainee4841]

I did- my takeaway was that you had to sell your crypto to fu d the crut and then can buy crypto and hold in crut. Just looking to see if that is correct.

[@Chaka2479]

@@lorrainee4841that’s my question. Can you just donate crypto to fund the trust or do you need to donate the crypto, sell the crypto, then re-buy crypto?

[@echin01]

Surprised you didn’t talk about tax loss harvesting and wash sale rule not applicable to crypto for the traders??

[@jimmymcgill5572]

but youre paying regular income tax on the $120k or 240k once the 5 years of tax write offs go away....How can this possibly be better over the course of 20 years than just paying LTCG one time?

[@mclovin6537]

Wait… I just calculated using a rough approximate CRUT table. If I put in 20 million into a CRUT, I get 10% a year, I don’t touch the amount in the CRUT so it stays at 20 million. I have to pay California tax rates… at the end of 20 years I only get 13m. Which means I effectively lost 7 million to taxes. That’s 35%. Now if instead we calculate that I use 1 million to make 20 million so a 19 million increase for long term gains tax. In California for that long term tax I need to pay 6.8 million in taxes. Bruh. wtf. It’s the same shit. For me I’d rather just pay that 6.8 million in taxes now and get it over with. CRUT only pays a max 10% a year and is limited to 20 years. YOU WILL NEVER GET YOUR ENTIRE AMOUNT BACK. IF YOU PUT 20 MILLIES IN THERE, THERE IS GOING TO BE 2-3 MILLIES THAT YOU WILL NEVER EVER SEE AND ITS GOING TO BE “CHARITY”. After calculating the numbers… IT DOESNT MAKE SENSE. The ROTH makes more sense.

[@PaulVazquezJD]

The CRUT is a different strategy for a different situation. For example, you can only contribute to a Roth while you are working; outside roll-overs from traditional accounts. So you're right, the Roth is a better strategy while you are working and have yet to max out the contribution limits of the standard and mega back door methods. CRUTs are only good instruments for tax savings; if you intended on donating that money to your charities, but would like to do so in a more tax advantage way. I hope that helps. Different tools for different sets of facts.

[@Chaka2479]

Don’t forget the tax deduction and you can get a lifetime CRUT.

[@dingdongdaddy589]

It’s not capital gains after 12 months…?

[@SAL-fs1mr]

It's long term capital gains after 12 months. Which is a lower rate.

[@Lulu-kt6gr]

Is it irrevocable?

[@cbarber]

WHAT??? 14:11 "Ever, ever, if you are??? (sand lot smalls???)" wot?? no tax ever but what is the if???

[@6gatornation]

Why does it cost so much to set up a trust

[@BeyondImaginaryLine]

Does this work for canadian based

[@cougarlove8542]

Awesome, I actually have a charity already and plan to give most of it to that. I wonder do I need a CRUT?

[@rich25511]

You don't report period

[@Westcoaststyling]

Two guarantees in this world, death & taxes...

[@WolfxxBite]

How much profit have you made without reporting? I feel like the IRS would be hunting for people making over 100k and not reporting

[@JC-vk6ii]

It makes sense to have a good plan, the issue is most people wont do this, just because they're lazy. Im moving to Puerto Rico and will put some of these systems in to affect. Nice video

[@coolinnovation6019]

Mark i have a question, if i dont have a million dollars earned from crypto yet, im new and starting to invest a little and trade as well, what should i open or do to reduce taxes on new gains i might aquire???🙏🙏🙏💯❤

[@RaviKashyapji-oe9tj]

NVIDIA backed token - BicoIai is gonna be massive.

[@Rohitkumar-hl2oe]

Best AI I've used so far, incredible accuracy

[@Waah.indians]

This thing just rendered me a video with the sound, i mean nobody could detect that it's an AI. BicoIai is gonna be huuuge!

[@salmabegum2833]

WOW. Just like me, my portf is 80% Bicolai.

[@ravikishanyadav3589]

Hopefully this one will crash my 6 limit :)

[@Gurmeetpro193]

I mean if NVIDIA backed it, it must be super cool :)

[@waynewilliams4930]

Unrealized gains are taxable?

[@metacombs]

No

[@syfodias-jedimaster]

Cant u just borrow against it?

[@cliff4713]

Hi Mark Very interesting and this video really got my motor running , which at 81 is hard to do ..haaa thank you and I signed up for the Aug 22 event...Bud

[@gunnera1]

Thanks for the tips. I’m a 17 year old planning to start a crypto mining corporation next year and you helped answer some of the things I didn’t know about. Thank you.

[@princelyadiele-nzewa668]

Good luck!

[@valbow7047]

Doesn't exist in Canada 😢

[@thelightbetween]

Simply Brilliant. Thank you!

[@joshscott3271]

Great insight and advice man, Winning!!!

[@mattbrinkmeier2990]

just dont pull it out...xrp has partnered with visa and master card...just use the credit cards to buy everything and use xrp to pay the credit card company. stay in debt

[@mattbrinkmeier2990]

also, i feel like converting crypto like xrp bitcoin solana ada to the dollar you're losing 80% of the value am i wrong?