Pay ZERO Taxes on Your Crypto Gains with a CRT | Mark J Kohler
I'm sure you're thinking about ways to
pay no tax or at least try to minimize the damage and we're looking at a big capital gains tax increase this year well i've got three words for you charitable remainder trust check this out okay so my viewers of my live broadcast every week and my podcast said mark we need you to explain how to use a charitable remainder trust with my crypto holdings my crypto gains that i'm facing personally so i'm not talking about cryptocurrency you might be doing in your roth ira your 401k or even mining crypto in your roth i'm talking about you that bought some bitcoin maybe five years ago and you're sitting on a million dollar game god bless you i hope that's the case so what i want to teach you and this is a little technical. You're owning cryptocurrency you're
pretty darn smart already so i want to give uh a little example of how to sell that cryptocurrency tax-free have an asset protected and blow your mind with this charitable trust strategy okay the circumstance the facts you're sitting on some cryptocurrency does that look like cryptocurrency i don't know cryptocurrency that has a fair market value let's say of one million dollars uh maybe you bought it for a thousand dollars that's called basis so you have a basis of 1000 and you have this gain a monstrous gain of 1 million dollars right now if you sold this bitcoin in your personal name your taxes would be at the federal level at least 23.8 percent plus any state tax if you live in california you're thinking oh i'll sell it in nevada or across the country or this or that or and another across the world in different country nope not gonna work. You'll get audited
and trust me you'll be screwed so add state on that of 13 now you're up to boy almost 33 percent 35 it could get ugly now not all states are 13 state tax rate it could be as low as 3 percent but as high as 13 plus the 23. so this is ugly so if you sold this cryptocurrency you're looking at a tax of possibly 300 grand easy so we don't want to deal with that so this is where the crtcomes into play step one you form a charitable remainder trust and now there's about 20 different versions of charitable remainder trust there's charitable lead trust uh charitable unit trusts i'm not going to go through the list i'm going to use the plain vanilla charitable remainder trust crt so you create this trust and that's step one i'll put that right over here now you're going to use a lawyer for this in our law firm i'll tell you how much we charge to do it i think we're pretty low low in pricing compared to many big city law firms but you can shop around but i'm just going to tell you the steps here so step one is you create this trust now in the trust later on down the road when you die i mean it's 20 years or when you die whichever is longer so it's a good deal so if you're in your 20s your 30s this could last another 50 years but this charitable major trust someday is gonna give the remainder all of it whatever is left to charity so you're gonna designate a charity now this could be your own.
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