Pay ZERO Taxes on Your Crypto Gains with a CRT Pt 2 | Mark J Kohler
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- Опубликовано: 4 окт 2024
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You don't know much about drag racing but I watch all your stuff. Good information, thanks.
Thank you!
This structure looks interesting, but a clear downside that I don't see being brought up is that you take a gain that you would otherwise be paying only long term capital gain taxes on and turn it into something you pay at the regular income rate, which is much higher
I have a question. Crypto is pretty fast moving. If I have a coin like XRP on Uphold and in the bull run it skyrockets (I might only have a day or 2 where it stays at this high price) and I don't have a CRT setup yet, can I transfer my XRP into a stablecoin (on Uphold or Coinbase) and then go through with a CRT?
As a person in the tax profession I enjoy & appreciate your wisdom
Thank you!!!
Beware ..Hell lot of scammers are responding.. it is better go directly to their website and call the number from there.. Mark it is better some one on your team regularly cleans these scammers.. to protect your viewers
Idk if anyone is reading this in 2023, but you mention selling your crypto asset prior to the transfer of asset to the CRT is game over.
What about trading it for other asset? Exchanges from one crypto to another for instance
The same rule applies because it’s recorded as a transaction
What happened to the video like this (probably part one) with just Mark explaining the CRT? It was very similar, but I felt it was much less cluttered to share with other people without all the back-and-forth conversation. I have searched through the videos but haven’t found it.
Really cool explanation thank you!
Thank you Guys! You’re a wealth of knowledge...much appreciated.
Thanks much!! My financial advisor told me it can be $20K to set up with huge annual maintenance costs. I appreciate the details you provided and will probably call you for a consult and set up.
This is a great topic. Do you have more content on CRT and various real estate assets? That Seinfeld reference was hilarious by the way. Lol
The adjusted gross income (AGI) limit for cash contributions to qualifying public charities remains increased for individual donors. For cash contributions made in 2021, you can elect to deduct up to 100 percent of your AGI (formerly 60 percent prior to the CARES Act).
- The AGI limit for cash contributions also remains increased for corporate donors. In 2021, corporations can deduct up to 25 percent of taxable income (formerly 10 percent prior to the CARES Act).
Hello Mark and Matt, Love your show! please don't stop. You showed us how to avoid cap gain tax but what about the income from the CRT? Please do a follow up video on how to save or avoid taxes when I received an income from my CRT. can I buy real estate and use RE depreciation against my income from the CRUTFLIP?
Thanks guys
Hello Mark!!
Your World Hands is a nj Nonprofit and will consider participating in this process
What do you think about the Deferred Sales Trust (DST)? Is it a good alternative to the CRT?
Can I set this up now and what if I don't fund it for 2yrs...cause I'm not sure when my crypto will be ready to cash out? Is that ok ? ...or is there a time frame on when you need to fund it?
Can a family court judge, divert funds the investor gains from a CRT payment system to alimony or child support?
When you place the crypto wallet into the trust who holds the private keys to that wallet,when you the beneficiary receives payout per month?
Has anybody used Mark and his Law firm to actually set up their CRT? How do you rate the experience from 1-10.
Did your CRT perform exactly as described in this video? If not what happen?. I want someone who has used this Law firm for a CRT,
to be honest and tell us the truth.
I was interested in speaking to them but based on some replies in the comment section, it looks like people having issues even contacting them. What a shame.
Im in the process, expect weeks in-between for communication and $400 an hour
@@YOYO-qe1uy any update?
@@YOYO-qe1uy What was your cost/outcome? Thanks!
Depending on my net worth 2 years or more I plan on building an apartment complex living on the top floor hopefully I can get landed over looks so late. And the apartment complex would be owned by a charitable remainder trust.
He's called #1
Amazing info! Thanks
Why would you ever want to sell your Bitcoin that makes no sense
1st... love you all.
Would this also apply to NFTs (non fungible tokens), you should do a video on this topic
I want this guys to help me create my CRT
Contact my law firm! kkoslawyers.com/contact-us/
Is this strategy able to protect limitations outlined in the current form of Crypto Bill in Congress..?
What limitations are you talking about?
What I dont know is where you invest funds after the CRT has control of the asset, Annuities do not pay more then 3%..
Jean Luc called Riker "#1"
How can I get in touch with you Mark Kohler to set up a CRT
Is the initial write-off gained from the contribution to the CRT limited by our previous years AGI? I've read that the maximum charitable deduction is around 60% our previous years AGI. Is this limitation handled different within a CRT? Is there no limit on deduction within a CRT?
2 Questions:
1. How are the annual distributions taxed? Cap gains or ordinary income?
2. Does it ever make sense/or is it even possible to roll an IRA into a CRT.
I heard that CRT’s are not a good idea for younger or average income individuals, because of potential Clawbacks from the IRS.
Why are clawbacks worse for someone who's younger vs. someone who's older and has more assets? (generally)
It would be great to see a numerical hypothetical example.
What happens if the CRT runs out of money after 7-10 years and you took your IRS deductions for those years? Would IRS ask you to pay back? An example in this case is crypto going to zero.
From the example either the CRUT or CRUTflip would best fit here. Because your distribution is re-calculated every year I would assume that the deductions may be recalculated. That is a good calculation. Maybe selling and turning it into fiat and reinvesting would be best the strategy. But that’s a great question
What type of trust would be good for a marrier 40 year old low income wager? I really want to achieve financial security. Thank you
What state is the CRT setup it? Are there tax benefits to setting up in Wyoming?... thank you in advance for your time
Wow. Can these CRTs be done in California? I know Cali has some funky laws and was wondering if this works there? TIA
Amazing guys! You gained another subscriber! One question - how would the % payments be taxed on my personal income? If initial gain is a short term capital gain - will it be taxed as ST capital gain even 10 years down the road?
YES.
Income inside a CRUT is taxed as it would otherwise be characterized.
When crypto goes up in relation to the Dollar it is considered a capital gain.
Hey Mark! What would be a good example of a institutional wallet that would be good for setting up a CRT?
Step 1: "What's crypto?"
😂
I would say it would be incorrect to tell people to wait until they have a million dollars that's not how the crypto world works 1 minute you have 50,000 and then the next minute crypto could possibly get you to a million and if you don't have an account set up and you want to sell before crypto crashes then you're screwed
Absolutely AMAZING!!!! I so want to do this. The catch 22 is getting setup before my crypto runs. I know it will but...WHEN???? You guys are awesome, thank you so much!
I feel the same way. Been contemplating this for weeks now but when is the question
This crypto run which should peek around Jan or Feb? Or are you talking the next crypto run that should start in 2025 and peek in late 2026 to 1Q 2027? The latter should put BTC between $1,000,000 and $1,300,000 per coin as per the stock to flow model.
Im looking at this because I bought BTC at $0.50 a coin and the capital gains on my holdings would be nuts.
No, the catch is getting the CRT setup before you *cash out* your crypto run. You don’t need to invest in crypto in the CRT to start - you just need to donate your already-appreciated crypto coin to the CRT before you convert it to anything else (because that triggers the tax event).
If you cash out and set up the trust in the same year it should still be able to deduct it. But I’m no lawyer.
@@cybercab If you cash out, you owe tax on the whole amount (minus your basis that has already had taxes paid). But donating to the CRT only gets you a deduction for about 15% of that value, so you get hosed.
If you put it into the CRT before triggering a tax event, you don’t owe the tax but still get the deduction. And the CRT is a charitable org, so it can then liquidate without paying tax.
Now this brought some real value for me. Lots of planning to do
Can you create your charity first , transfer your crypto then incorporate it into your CRT. ?
Does this only apply to U.S citizens? Or can European people use your crt trust? Thank you
I cannot find part one could you please send link?
So I am in my early-mid 20s, making moves in crypto so I can hopefully have big money to play with. What would be the best plan for me, if I do end up having hundreds of thousands in crypto? I'd assume my age would allow me to get a lower % on the deductible and everything else. Just would like to know if there are better options for me, rather than a CRT. Thanks
Can an asset go into a CRT tax free of depreciation recapture tax? For example an apartment that has depreciated down to zero.
Can I use my own charity setup in the family name?
📤📤📤
Terrific content Thanks
Me and my wife will be contacting you when we are ready to do our CRT
This sounds like a silly question, and I'm not being facetious, but would there still be value in structuring a CRT in the manner illustrated in the video if the IRS were to become nonexistent?
so who should we talk to if decide using your services? you better pay attention to your customer service !
Mark, was there a Step 6 that I missed?
Can one create their own 501(c)3 and have the remaining corpus in the CRT go into their own or relatives like kids or grandkids Charities?
Very informative! I wish I could get CPE for listening 😆
Hilarious that I was about to search this on RUclips?
Can to you just “gift” (gift lifetime exemption law) your gains to your mom, dad, brother or someone and avoid 100% of the taxes?
I need to sit down with a good tax guy like you. I’m based in MA. Do you know anyone that you can suggest? Thank you so much
I have a Chritable Religiouse trust. Are you willing to work with someone who already has a Trust and EIN' but have not yet transfered any assets yet?
here is a question. Can you have the beneficiary of the Life insurance be a separate CRT with a child as the Income beneficiary of that one with the first 5 years of annuity payments front loading the new life insurance policy?
number 1..............
Inside this CRUT style trust can you have a wallet or account inside it that draws interest off certain coins inside it? similar to crypto app staking or coinbase wallet?
Instead of funding a whole life policy during the first years of the CRT income, why not just get a 30 year term policy which would be a lot less expensive. During that time could build up a large amount as well with some of the income that would be invested and inheritable. Thoughts?
I am assuming that you could do this but it would probably work better if you are younger. Most carriers will not allow a 30 year term after a certain age. Maybe a 10,15, or 20 year. It seems like the primary reason for a whole life is because you will be making the payments while receiving the 5 year tax deduction. You are overfunding the insurance so when the 5 year deduction ends you have enough funds in the policy to pay the premium for the rest of your calculated mortality. If you use term you could potentially be uninsurable at the end of the term. Plus letting the premium be paid from the cash value puts it on autopilot. No need to recalculate after the term. But great question. I’d like to hear their thoughts
@@darrickharris5534 Some good points...I am mid 50s so was considering the term route and looking into the whole life quotes was 7-10 times the price of term. Fiqured could just pay the term premiums and then overfund investments that would likely provided an even greater inheritance in the long term with the term protection early on
@@jspbipro I think the primary reasoning behind whole life are the guarantees. The term is guaranteed if you die within the timeframe of term. The whole life is permanent so you won’t out live it unless you live to 120. Then you’ll just take distribution. Making other investments is okay but you don’t have any guarantees. You could potentially grow the funds and there is always the chance that you won’t. So the sound advice from an advisor, especially if you want to make sure that your family is taken care of, you would go with the option with the most guarantees. People just like guarantees in general. 😁
Can an IRS be transferred to a CRT?
I'M IN DALLAS, TEXAS
Capital gains will not be a concern for long-term holders of crypto.
Mark your staff says the consults is now 30 min…not an hour.
Thank you. If CRT funds the ILIT, what percentage of the original donation: a. is tax deductible, b. funds the annuity?
The deduction from the donation depends on how much is forecasted to go to charity at the end. This depends on a formula that factors your age, the type of CRT, etc. Younger people get less deduction because statistically they’re less likely to end up with as much going to charity when they die. 15% seems to be a reasonable rough figure.
How much is needed for the ILIT is “it depends”. Your insurability / cost, the rate money is being taken out of the CRT each year, etc. Rough estimates are to use the first ~5 years of proceeds to seed an ILIT, with a lot of tax on that income being offset by the deduction.
Where is part 1?
Can you move your crypto from altcoins to stable coins before moving into the CRT. Or once you sell crypto for another crypto, you pay taxes.
When you see of exchange your crypto it is a taxable event. So if you convert your BTC to USDC (for example) the capitol gains are calculated at the time of conversion.
For this to work you would have to transfer the coins you are holding without converting them.
I am not a lawyer, CPA, or CFP. Im just a Grandpa with Grandpa knowledge. ;) I know this because I converted an old coin to something that has better potential last year and my CPA explained it and why I had to pay the capital gains on the old coin.
I have the same question. And when you sold the coin for a different one and it didn’t go up all this time before sale there is no capital gain , right ?
You can, it's a taxable event, but if you didn't make any money then its a non issue. So if you have realized capital gains then you'll owe tax.
I agree with Grandpa’s Place. A taxable event occurs whenever you exchange your coin for something else, even if it’s another crypto - a gain or loss is “realized”.
The value for a CRT is to give it something that’s increased in value a lot but that gain hasn’t been realized - so the taxable event happens inside the CRT. You get a tax deduction for part of the donation’s full value, and you get (taxable) income over time from the CRT.
Mark sounds like Iron Man! :)
So if a CRUT invests in say S&P 500 index funds or ETF's that average 15% annually over the last 10 years and the CRUT payout is set to 10% then I would assume the CRT would grow throughout it's life and the actuarial charts would show that. As such as long as the % paid out is less than the expected rate of return on the investments it should pass muster with the IRS?
The IRS doesn't care what you invest in. They have set charts that you input your age sex and % payout into. They come up with their own average expected interest rate. Otherwise you could just put it back into crypto and say that it gains thousands of percent a year on average and the trust would run out of money after a short period of time.
How do you resolve the situation of a crypto exchange like Coinbase, Kraken, etc. not setting up the CRT for you to get that institutional wallet to donate the asset to? Do you have any insider connections that your team can help get it open? Do you just turn it over to us to get that set up? It is a nightmare to get an exchange to communicate with you. I was trying to get one set up for over 6 months with only 3 replies from the exchange "We will get back to you". In this case it was that the custodian got the money to set it up for me but now it is dead in the water with no help from anyone...why would they do anything now because they got paid and went on to the next person.
***Mark am I correct that if the CRT formation date is after the date you have sell the crypto (during the bull run) that it cannot be placed in the CRT retroactively? I.e. is there a rule allowing donation of our crypto to our CRT that doesn’t exist yet? ***
Praying that you get some help to move your waiting list up from December 1 being the first CRT appointment. Wish I had known about this sooner. I need the CRT etc set up before the bull run.😭😭.
Do you take out of state clients?
Mark, how is the annuity taxed when we receive payment? Also, can I take out an ILIT for me and my wife in case either of us die?
Taxation of payments varies, depending on the nature of the money that’s being paid out. E.g., long-term capital gains, ordinary income, etc. Search for “worst in, first out” to learn more.
Is there an age requirement to start a CRT?
Can you have more than one CRT for your Cryptocurrency?
James, to get your question answered, please submit it to podcast.mainstreetbusiness.com - thank you!
Can a person or couple have more than one CRT over a lifetime?
Is the 5k fee deductible
Not how drag racing works. If their tires spin, they are likely to lose. They heat tire up before the race so they’re sticking when they launch in the race.
Do you maintain control of the asset while its in the trust?
Don't you pay income tax on payments from the CRAT/CRUT?
Thankss~~~~
Still waiting for Mark to get back with us. No problem taking deposit months ago though.
I'm sorry you haven't heard from my team. Please email my assistant whitney@kkoslawyers.com so we can better sort out what the issue is and see how we can help!
How do we attach crypto cold wallet to the trust?
@Whatsapp➕⓵⓹⓵⓼⓽⓼⓷⓼⓪⓺⓶ 🤣🤣🤣🤣🤣scammer...you think we are born yesterday?
So the annuities are taxed as income?
If trade crypto to crypto, is that considered a sale? Or is a sale only when you convert crypto to fiat?
Crypto to crypto is considered a sale of one to buy the other. It's a taxable event
How does this strategy stack up to collateralized loans with crypto?
Mark I am looking for land...like off the grid land in other states outside of California....my question is what's the best route to purchase?? In my name, a Trust, etc.
Research THOROUGHLY “Allodial Title”.
I just feel sorry for the guy that never gets fries on the call. Bonus points for understanding inertia.
I am so excited I booked my appointment w ur office oct 25!! Not sure one hour will be enough 😂
What number did you call? I cannot get through 🥲
Did you try the number for our corporate office? (435) 586-9366
@@MarkJKohler I did not. I called the 1-888#.
I think it is official now. For some reason I was not billed right away so I called back yesterday. I did not get a follow up call to that but today I got notification my card declined ur office.
I forgot I wasn’t billed and set a trade using the money to pay for my consult which consequently declined my card. Sigh. I just got off the phone w the billing department and all is good! Can’t wait.
Probably part of my plan should include keeping money in my bank account 😂 I swear I am financially responsible! Haha
@@LegoFlipC I called the 1-888 number. Press 0 and was answered. I had tried months ago and got a voicemail. My call was not returned. Not impressed w the office staff but I believe in the legal/ accounting I hear on the channel here.
@@LegoFlipC w that said I also didn’t have money in my account to pay when they billed me 😂 so I am not impressed w myself either.
does the money get from CRAT need to pay income tax? which can be higher than capital gain tax, right?
the money that comes out of the CRUT/CRAT is taxed as the same as what you put in which would be long term capital gains if you held the asset for more than one year before you donated it to the trust.
Thank You, This is a vaccination that works
Lol 😂 😆
He called him “Number 1.” 😃
An addition to this (so that the crypto is protected from fluctuation) is to transfer the crypto gains to a stable coin and donate the stable coin. That way when it is with the CRT before selling, it won’t go down. It won’t go up either. Please correct me if this goes against any tax law I’m not aware of. Thanks!
selling your appreciated crypto to buy a stable coin is a taxable event. as far as the IRS is concerned there is no "trade" it is a "buy- sell" taxable event
@@eugenec1733 precisely ;)
I think moving to Chile is the best option!
Portugal
Any sells while the asset is in the CRT is not taxable. So fund the CRT first before transferring or investing into stable coin.