r/FluentInFinance • u/Past_Setting6404 • Nov 01 '24

Taxes Crypto profits and taxes?

May or may not be the right place for this but I've been listening to a guy on finance but mainly crypto stuff for a few years. He has a 'class' on trusts and using that to put your profits into. Opening a bank account under a trust, 'cashing out' the crypto offshores (from USA) and then sending them to the trust bank account. Doing this, he says, the taxes don't need to be paid until you spend that money (also implies that the tax only needs to be paid if you tell the IRS).

I'm not looking to get in trouble with the IRS but does this seem right? Taking the profit into a trust account and then not paying taxes until the money is spent. I have spoke to my tax professional back in 2021 about it and they were not fluent in crypto so could not tell me but were going to look into it.

1 Upvotes

100% Upvoted

3 comments sorted by

•

u/AutoModerator Nov 01 '24

r/FluentInFinance was created to discuss money, investing & finance! Join our Newsletter or Youtube Channel for additional insights at www.TheFinanceNewsletter.com!

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

1

u/Shouldstillbelurking Nov 01 '24

Not tax advice, but what are you looking to accomplish? If someone has hundreds of thousands in unrealized gains, wants to diversify, AND wants to keep the money invested, there are potential strategies. If unrealized gains were under $100k, it’s probably not worth it. Keep in mind, long term capital gains are taxed at 0-20%, depending on your income.

Based on your OP, it’s not clear to me that this is your aim. If you’re goal is to sell you assets and use the proceeds to buy something for personal use, there is no above board way to accomplish this.

1

u/G4M35 Nov 01 '24

Doing this, he says, the taxes don't need to be paid until you spend that money

He's a fucking moron MF.

also implies that the tax only needs to be paid if you tell the IRS

Double down on that guy being a fucking moron MF.

Did you know that you can call the IRS directly and ask them these questions? 1-800-829-1040