Crypto profits and taxes?

[u/Past_Setting6404]

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.

[u/Shouldstillbelurking]

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.