Selling bitcoin is not a good idea. Just wait until some financial services start to appear (like borrowing against) or when bitcoin will become legal tender 🤔
Agreed govt taxation on personal income is the biggest scam. Its just used for control of citizens. They don't even need our taxes they just print money out of thin air. Run up of budgets of any size they like.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@VioletJessica- The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
You have to pay 1-1.5% annually for management fees from the little I’ve seen. If you have 10M donated, that’s 100K/yr and in 20 yrs that’s 2M. A good amount of thinking and comparison is needed before deciding on this. Thanks for content. I am exploring and will be consulting tax lawyers.
n m15% in canada on crypto LOL I aint even telling them.. and they cant know so........what they dont know cant hurt me.........besides, the income was all the computers... not mine.... :-)
I would make the argument that the actuarial fees that you have to pay might push that $100k number closer to the $500k number if you are taking varrying distributions from a CRUT. Good intro video! Next up is using SLATs to avoid federal inheritance/estate tax.
the charitable trust will save you the 20% capital gains tax…. But when you receive the payments out from the annuity, you have to pay your normal income tax on that, which is typically much more than 20%.. because the federal tax is going to be more than 20% and your state tax will be upwards of an additional 10%… And the initial tax savings in the first five years is nowhere close to the amount of INCOME tax you’re gonna pay on the annuity payments…
yes. but also don't forget the bill gates method where it then buys products from businesses where you're a stockholder and the stock price goes up making you even richer...
In a trust, there are three positions: the grantor (the person who puts the money in the trust), the trustee (the person who controls the trust), and the beneficiary (the person whom the money in the trust goes to). You can't be all three. By creating a CRT and putting money in it, you are the become the grantor. Naming yourself as the beneficiary is fine, but it means you would need to find a trustee who has total control over the assets in trust. It's better to name yourself as the trustee and pay yourself a salary. That way you have complete control over the trust and its assets.
Problem is the time value of money...375k after tax that gets invested is worth a whole lot more than the 500k a life insurance policy pays out in 40 years when you die. You also have to liquidate the trust at 5% or more per year...losing it's potential earnings. It may be worth it for the tax savings, but it's not as great as it sounds IMO.
I just found this a year later and you do not know how much I appreciate you. I'm from California and I get screwed every year. Would leave, but I take care of my elderly mom and she refused to leave her home. I will make it a point to thank you someday financially just because you shared this with us here. I never forget those who helped me in life, thank you.....
Another option, borrow against your BTC holdings at a 25% LTV. The loan APR is 1%. BTC has appreciated at an average of 200% a year. In this strategy, you'll never pay taxes since loans are not a taxable event & when BTC increases in value you can do a reverse margin call to get back some of your collateral. This will help you ride out the bear market & have cash in hand but not sell your assets. Thanks for the trust option it sounds great & I'll look into it as well.
@@CinemAdsvideo Astute observation. BTC would need to crash greater than 75% for that to occur using this strategy. To prepare for that possibility a) have reserve BTC ready to deploy in that event b) from the $ amount borrowed reserve a % to use to help safe guard your collateralized asset to weather any black swan event. Preparation is key to success.
my friend you just made my day bringing this to my attention and i also want to say that you are the best teacher i have ever listened to, really appreciate who you are and what you teach! please dont retire yet, i need 3 to 5 more years to follow
@@RuskiVodkaaaa if you died before selling, technically your heirs would not have to pay capital gains tax. (Step up in cost basis.) Also, assuming US tax laws. Inheritance is like a "gift" and technically there's also no tax on a gift. (Also assuming under $11 million, there are special rules above that if you're some kind of baller.) It is also morbid to think such things. Best to use it all when you're alive. 😀
Honestly for stocks just borrow against your stocks, for crypto just staking your money and live off the interest, but if you have a business buy some assets that can be deducted on your taxes. Easy ways to dodge tax
Why does this make sense? Long-term capital gains tax is usually lower than being taxed as ordinary income. When you put it in a CRT then take a payout, this is taxed as ordinary income.
Ya but don’t you still get that money after let’s say you get 500k in annuity so let’s say you live for 60 more years at 30k a year that 1.8 million bucks instead of 500k but ya idk if I would want to put it in a crt just cause I like to have the money up front but ya gotta think about it
Yeah, especially since with this method you get your earnings dispensed to you over the course of years. At least with the normal tax paying route, I can get a lump sum and make bigger investment plays immediately
This is amazing thank you for sharing! Another way to pay not zero but way less taxes is to set up a business, an LLC or corporation, in a state such as Nevada or South Dakota which have no personal income tax and no corporate income tax. So you would only have to pay the federal corporate income tax (if you set up a corporation). I'm looking into setting up an LLC for my investments. I'll look into this way as well!
Woah for real? I'm so excited. Lauren Hopkins strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started
The fact that trading a coin into another coin is a taxable event is an absolute scam. If you trade 1 ETH for 20 LTC, and had that 1 ETH appreciate by $1,000, you have not realized $1,000. You have only now obtained 20 LTC. You do not have an extra $1,000 and did not purchase a good or service. I think the cost basis should just be whatever you put into your original crypto, and your realized gains should only be when you sell a cryptocurrency coin for Fiat currency or a good/service.
Remember it's not the full 1000 you have to pay, the 1000 is taxed because it appreciated. If it went the other way and it depreciated, it benefits you as it counts as a loss. Either way, it's stupid
You are trying to reason with criminals who are intent on taking wealth. Reason only works with those who would help you hold the criminals accountable.
This is legit the only video on CRT’s that I could actually wrap my head around and I’m convinced I need for the future (I stand to lose a ton to crypto taxes in the next few years). Thank you so much for this! At what point is a good time to set one up? Like even right now well before I cash out?
how much would you lose? I guarantee it would be alot, lot, lot less than me (not saying that you are completely broke) but investments from your minimum wage job do not count as a ton of crypto lolololololol
Depends on when you want to sell. You need the crypto assets already in the CRT at the moment you wish to sell, which means by then you’ll need to have set it up already
@@warpedwhimsical yeah I figured, it’s just that it costs like $5000 to set up and idk how much I’m going to profit from my investments to make it worth it for me. I guess it doesn’t hurt to just talk to an estate attorney just to get a better idea if it’s for me. Thanks for your help!
I don’t get it. A breakup of before and after would be good to illustrate the savings. From my understanding, with the elaborate system of the CRT I would get tax benefits for around 150k$ but would be subject to income tax whenever I would drain the CRT. I would assume to pay more than the initial 125k$ capital gains tax as initially proposed. Am I missing something?
My understanding is- You can't drain the CRT so not tax will be paid on the assets in it. You basically, on his example of 500K, would get yourself an annuity that pays you approx 7% lets say. So you would get 35K annually for the rest of your life but you can't touch the 500K, if you used his way of doing this. Then using the annuity income you'd set up an irrevocable life insurance trust for 500K (life insurance on yourself) so your kids or whomever you want will get the equivalent of your assets in the CRT. And the charity gets the CRT assets. Make sense?
@Max Maher. If i get paid annuity of 7% from 500 grands in CRT, won't it be exhausted at one point, maybe in just 14 years there will be nothing left in the CRT right?
I would argue a better way is just sell under $50k per year and you will be I. A low cap gains tax bracket and pay little cap gains anyway. Also many people have lost or had some crypto stolen which can be written off against cap gains.
I just think that I'll never sell or trade my Sats. As the asset ages and becomes less volatile, borrowing against it will become cheaper and less risky.
Institutions dealing with Long Covid research 🙏 It’s debilitating. Along those lines, Fibromyalgia, MCS, CIRS.. that corner. So much more research needed. More and more people affected. It’s exponential. Not talking about the actual viral infection, but the chronic lingering form of it.
Hey brother! This is some really, really good information! I came across your channel late at night, and I could not go back to sleep knowing this lol thank you so much for sharing!
Question: Can my CRT take the cash and invest into dividend stocks? My plan is to have the CRT invest into dividend stocks, then the dividends are paid to me as an annuity?
Although you get the 30-40% deduction on the original donation, you have traded your 20% marginal long term capital gains taxes for a 37% marginal rate for ordinary income on the annuity. Congress may also decide to increase those rates, but you will be stuck paying them since this is the only way you can get your money out.
But isn't the ordinary income tax on the annuity payment separate then the principal amount of the asset being held in the CRT? Its extra money on top of the asset so the 37%, or whatever tax bracket your in, is on extra money earned not on the asset or cypto sold, the 500K in his example. Correct? Or am i not understanding something about what you said?
@@rawandreelwithdaryldonna1624 As I understand, there are two types of CRTs and your video covers the Annuity type. As far as I can tell, the Annuity trust only pays you back the same value you put in originally (i.e. on a deferred basis), and any investment gains would go to the charity. Charitable Remainder Unitrusts on the other hand pay out depending on the marked-to-market value of the account. They also allow for subsequent additional contributions, which the Annuity does not. In this case, you can personally share on the benefit from the increased market value. However your video seems to describe the Annuity type.
@@quixoticPrancer, so could I set up the annuity to pay 20% a year? He said at least 5% but used 7%. Is there a max % per year number? And what if I just leave it as cash? No gains = no money for charity but also no risk to the original investment which means I’ll eventually get the 500k back?
@@KK-sg5gl There are a bunch of rules that dictate the max % payout per year. But as far as I can tell, you can't ever get out more than 100% of what you put in with the Annuity-type CRT, regardless of the withdrawal schedule.
@@KK-sg5gl NO, you must leave the expected amount to the charity or the IRS will cancel it and all your benefits and you will have to pay back all your tax savings and years of interest and penalties. So, you HAVE to make some money investing your CRT each year to make up for what you take out. Whatever your tax deduction is calculated to be in the beginning, that is what has to be remaining for the charity.
I just want to get this completely straight...so after 5 years of 60% deductions to the trust, we THEN sell? Sooo.. the 5 years of deductions isn't selling??? I'm confused on that one detail.
You get 5 years deductions on your personal taxes when you donate it to the CRT. The CRT can sell it whenever it wants and pay no taxes because it is a charity.
You don't sell the BTC to the CRT, you donate it to the CRT. You then take a personal tax deduction over 5yrs for the charitable donation you made. Later, the CRT can sell the BTC within the trust, and being a charity, the CRT doesn't pay cap gains tax. The CRT can then use the proceeds of that tax-free sale to purchase an annuity, or life insurance policy, on you.
@@Paul-jp8zz So do you take the value of the BTC as soon as it's donated? Then do the math on that? Also If you don't convert the BTC to usd, leave it in a crpyto wallet do you collect 8% of the BTC back?
@@ratedmark4704 Once its donated you can deduct the value at 30-40% approx over 5 years. You can't collect personally any money once you've donated the the CRT but the CRT can purchase an annuity with you as a beneficiary and you can collect the interest payment on that annuity annually until you die so depending on your age you can over many years make more money than the asset was originally worth at the time that you donated it to the CRT. And within the CRT you can trade it and stake and whatever you want to grow it but it grows for the charity. You can purchase and set up a trust for life insurance for your family and pay that from your annuity interest payments so your family gets some money when you die. But you can't touch the CRT assets. This is how I understand it.
K so a little confused. So 500k divide that by 35k yearly payment equals 14 years of payments. So what happens when all the money is used as payments? If you are being paid 35k a year and the money is not being invested then obviously it's going to run out.
Appreciate the detailed breakdown! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
Crypto should not be taxed anyway, its your own money that has already been taxed before, its doubke dipping getting taxed again, the value of your money just increases.
Aorus_Gaming96 yes it does? If you buy a house with money you have been taxed on, when you sell the house you get taxed on profit. It’s double dipping, same thing.
Moving to Puerto Rico, is not an option to me, but this info is super valuable to me. My current gains exceed 1.3 million in stocks, not including other gains in crypto. Great video, thanks a million.
Great strategy. Cash-value whole life insurance works well (better in fact) in this case where you described using an annuity. That way not only does the charity get the BTC proceeds, and you get access to cash while you're alive (tax free) but your family gets the death benefit (which should by then be much more than the 500k) when you're gone rather than spending their remaining years pissing and moaning that you left your BTC to a charity instead of them.
what is the best state to set something up like this? I'm looking for a new place to live in the new year...and this strategy sounds wonderful on paper. Just trying to figure out the logistics and all the missing pieces I need to make it real,
@@cozycabin752 That's actually not true. I've had policies for 20+ years and they have performed better than the "non guaranteed" illustration and when I do die, they will pay out exactly as is contractually guaranteed. Do your own research. Regardless, this is besides the point for the strategy he's describing.
My tax is being taken care of, I have never had issues with tax since I started working with my pf manager, she's been outstanding.. I just save, stack up
Wow incredible, I've been looking for means to start up from the scratch , I've lost alot and i need full guidelines,. How do I meet this person you speak of
@@alexbury724 I met her on a trading convention center here in Tennessee, I was bold enough to tell her my problems and she helped me absolutely, I have no issues at all
This is great IF you’re a US citizen, but potentially in some other countries that might have something remotely similar. Question, by selling, do you mean you typically pay capital gains when selling from BTC back into Fiat USD or even if you sell into any Alt coin?
Do you have any input or advice on how to learn technical analysis to trade crypto, or even stocks? Books? Videos? Classes? I have been looking and have not found, Thanks!
Man's really ended with "I'll donate to charity" after showing how to manipulate a charity for your own tax benefits. As if he isn't about to just got donate capital gains to his own charity 😂
Am I missing something? The point is not to “not pay capital gains tax,” the point is to not lose your money. If you pay regular income tax on the annuity, which is the same percentage as long-term capital gains tax anyway from my understanding, you are still losing that money to taxes, merely stretched out over your lifetime of annuity payments instead of the one tax year following your crypto sale.
Great video, but if I make millions in crypto, I’ll just simplify it: pay the tax, keep the cash, & never have to think about it again 🤷♂️ I’m not greedy…
For real though lol how many pennies do we really need to save. I have no problem paying my taxes. It's the way my dollars are spent that pisses me off lol
EXACTLY what I plan to do in a few months, pay my 23% in long term. I will.not have to look over my shoulder for the taxman.. sleep easier, and I don't mind paying some taxes, freedom is not free and I don't mind helping out the poor and needy... but we do need to do something about these billionaires and corporations paying ZERO in taxes..
Sounds like this is an option if one completely didnt want to invest that asset any more. But why wouldn't they. Why wouldn't one just keep it invested while you sell small percentages of your asset total per yr. Going this route of the trust seems like it would cost you more by missing out of all the gaining potential of the asset.
Best Video on RUclips and even the whole web on avoiding capital gains tax on our crypto. Thanks Max! You just got yourself a new subscriber. I'll share on social media and let others know about you.
You have to pay for all the short term capital gains just as if it was income from a W-2 job. (Which means, depending on the income, you might pay as much as 39% of it as tax. Ouch.) Long term capital gains (assets held for a year or more before being sold) could be as low as 0% federal income tax. (But you also must pay state income tax, which might be 13% in California for high income earners, or a 5% US average, or 0% if you live in certain states.)
Had all my ETH since back in 2017. I'm living off the passive income staking it on NEXO at 5%. Then I have ETHE and GBTC and it's up too. I'm buying land now. Loving life!
![OhGeesy x Lefty Gunplay - What It Iz [Official Music Video]](http://i.ytimg.com/vi/L0yzW9t2ixk/mqdefault.jpg)
Here’s another way to pay ZERO tax on crypto - An IRA: itrust.capital/maher
(Plus you get $100 free BTC for signing up, so that’s nice)
Selling bitcoin is not a good idea. Just wait until some financial services start to appear (like borrowing against) or when bitcoin will become legal tender 🤔
Getting taxed on a market investment that you made with your money thats already been taxed is absolutely ridiculous imo
Agreed govt taxation on personal income is the biggest scam. Its just used for control of citizens. They don't even need our taxes they just print money out of thin air. Run up of budgets of any size they like.
Right! What if you only gained 30 % and then have to pay 30%?? Or am I getting it wrong and ur only taxed on ur profit
@@DrivenByLuckHaha of course you’re only taxed on your profit, and you can claim benefits from your losses
100% absolute joke.
That let you know, you are not a owner of any company for stockyou buy in the market
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@VioletJessica- That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@LiamOlivia-4 My advisor is VICTORIA CARMEN SANTAELLA;
You can look her up online
@@VioletJessica- The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
In Switzerland we have 0% of tax on Capital Gain, no matter what.
😭 why i am not born in Switzerland.
Here in India its 30% tax on capital gains
@@mypackmypower1996 it’s not needed to be born, it’s enough to be resident
@@Italymich how do we do this? 👀
@@thefirsttrillionaire2925move to Switzerland to be a resident of Switzerland
@@Italymichwich is hard to do😂😂
Saving this for when my SHIB breaks past mars.
LMAO
Indeed
lmao bro
@Foxtrot Oscar never say never
Yuppp! This and Saitama
What is the best strategy to enter crypto trading now for someone with more or less than $28k
You need a pro or very goodTrader. Someone like Jared Brian Watkins
I went from 50k to 400k with Jared. Thanks to that I paid off my debts
In what way can he be reached
f a c e ---b o o k
Jared Brian Watkins is hishandle
My teacher was telling me that she was going to start teaching CRT in class. Thought I'd watch this video to get a head start!
🤣
Cathode Ray Tube. It's an old school monitor with a glass screen and a big vacuum tube in the back.
It was cool getting tax advice from Edge.
love this comment
On this day, I see clearly.
lol, I laughed
Yooooo 🤣🤣🤣🤣☠️☠️
Underrated comment
You have to pay 1-1.5% annually for management fees from the little I’ve seen. If you have 10M donated, that’s 100K/yr and in 20 yrs that’s 2M. A good amount of thinking and comparison is needed before deciding on this. Thanks for content. I am exploring and will be consulting tax lawyers.
My pleasure!
who is the manager that you are paying management fees to?
n m15% in canada on crypto LOL I aint even telling them.. and they cant know so........what they dont know cant hurt me.........besides, the income was all the computers... not mine.... :-)
Great content Max. I found out about CRTs earlier this year. Its how all these billionaires keep their money without being taxed
100%, it’s also what I specialize in, let me know if you ever need help.
Also life insurance in trust, as what the Rockafellers did to preserve money and shield it from taxes.
"It's like your own personal Make a Wish, except your wish is to pay less tax." Haha! Great line.
I would make the argument that the actuarial fees that you have to pay might push that $100k number closer to the $500k number if you are taking varrying distributions from a CRUT. Good intro video! Next up is using SLATs to avoid federal inheritance/estate tax.
the charitable trust will save you the 20% capital gains tax…. But when you receive the payments out from the annuity, you have to pay your normal income tax on that, which is typically much more than 20%.. because the federal tax is going to be more than 20% and your state tax will be upwards of an additional 10%… And the initial tax savings in the first five years is nowhere close to the amount of INCOME tax you’re gonna pay on the annuity payments…
@@bj6488 not to benes.
@@bj6488 that isn't how the 4 tiers work for this particular instrument.
So is this the reason why every rich person donates insane amounts of money to charities? Because they are using a CRT to avoid taxes?
I already have 1 in mind
yes. but also don't forget the bill gates method where it then buys products from businesses where you're a stockholder and the stock price goes up making you even richer...
@@michaellamont2605That nerd who visited epstein island you mean?
@@schlomo7637 maybe sounds like Hill Hates?
@@michaellamont2605 That nerd yeah.
In a trust, there are three positions: the grantor (the person who puts the money in the trust), the trustee (the person who controls the trust), and the beneficiary (the person whom the money in the trust goes to). You can't be all three. By creating a CRT and putting money in it, you are the become the grantor. Naming yourself as the beneficiary is fine, but it means you would need to find a trustee who has total control over the assets in trust. It's better to name yourself as the trustee and pay yourself a salary. That way you have complete control over the trust and its assets.
Thank you soooo much for adding this addendum.
U better read the new law
@@Kevin-id5hx Can you elaborate? What new law? There are lots of new laws every year.
@@Kevin-id5hx yes plz elaborate.
@@Kevin-id5hx dont leave us hanging Kev..
Problem is the time value of money...375k after tax that gets invested is worth a whole lot more than the 500k a life insurance policy pays out in 40 years when you die. You also have to liquidate the trust at 5% or more per year...losing it's potential earnings. It may be worth it for the tax savings, but it's not as great as it sounds IMO.
So true!
The 500k in the trust is still being invested though, so TVM isn't a concern no?
Apple stock returns on average 20-30% per year
when you liquidate the trust, you can use that money to invest in your own personal portfolio if you like, so what difference does it make?
Fax!
Wow that's a lot of complex info simplified. Thank you for the amazing content!!!!!!!
I just found this a year later and you do not know how much I appreciate you. I'm from California and I get screwed every year. Would leave, but I take care of my elderly mom and she refused to leave her home. I will make it a point to thank you someday financially just because you shared this with us here. I never forget those who helped me in life, thank you.....
Just knowing I could help is enough. Take care of yourself and your mom! 👍
Another option, borrow against your BTC holdings at a 25% LTV. The loan APR is 1%. BTC has appreciated at an average of 200% a year. In this strategy, you'll never pay taxes since loans are not a taxable event & when BTC increases in value you can do a reverse margin call to get back some of your collateral. This will help you ride out the bear market & have cash in hand but not sell your assets. Thanks for the trust option it sounds great & I'll look into it as well.
I think we need a video on this too! :-)
What happens if u get liquidated from the exchange from a flash crash
@@CinemAdsvideo Astute observation. BTC would need to crash greater than 75% for that to occur using this strategy. To prepare for that possibility a) have reserve BTC ready to deploy in that event b) from the $ amount borrowed reserve a % to use to help safe guard your collateralized asset to weather any black swan event. Preparation is key to success.
@@dalva72 greater than 75%? Bitcoin went down 5% yesterday causing tons of money in liquidations… from people leveraging. Is that different?
@@CinemAdsvideo I hope for the best outcome but prepare for the worse case scenario.
The fact that you used a clip of Jones Good Ass BBQ and Foot Massage when you mentioned businesses has me rollin lol
I had to pause and just enjoy that feeling for a moment
Note: most countries have some form of a charitable remainder trust however they can vary a little
my friend you just made my day bringing this to my attention and i also want to say that you are the best teacher i have ever listened to, really appreciate who you are and what you teach! please dont retire yet, i need 3 to 5 more years to follow
Really
I’m a former licensed financial advisor and this is the best explanation of CRTs I’ve ever seen. Wasn’t expecting that!
This is awesome Max, thank you very much for sharing and teaching it so well!!
My pleasure!
The way I like avoiding tax is HODLing
That's just delaying the tax... unless you lose 😂
HODLing is so flawed lmao, you limit your gains (take profits and reinvest that money) and you still have to pay the tax like the rest of us
@@RuskiVodkaaaa I just invest with my other cashflow, no need to sell to reinvest lol
@@JohnStax98 But were so early in crypto most projects(besides bitcoin) have a good chance to not be around in 5 years.
@@RuskiVodkaaaa if you died before selling, technically your heirs would not have to pay capital gains tax. (Step up in cost basis.) Also, assuming US tax laws. Inheritance is like a "gift" and technically there's also no tax on a gift. (Also assuming under $11 million, there are special rules above that if you're some kind of baller.)
It is also morbid to think such things. Best to use it all when you're alive. 😀
Honestly for stocks just borrow against your stocks, for crypto just staking your money and live off the interest, but if you have a business buy some assets that can be deducted on your taxes. Easy ways to dodge tax
Million ways to save a million bucks
Dont you have to pay tax from interest?
Love your good no bullshit straight ahead knowledge brother. Thanks for the help!
You are so welcome, brother! Nothing but the best for my viewers 👌
Why does this make sense? Long-term capital gains tax is usually lower than being taxed as ordinary income. When you put it in a CRT then take a payout, this is taxed as ordinary income.
I believe the tax write off would offset the income for the first few years.
@@JeffT2 nope
Ya but don’t you still get that money after let’s say you get 500k in annuity so let’s say you live for 60 more years at 30k a year that 1.8 million bucks instead of 500k but ya idk if I would want to put it in a crt just cause I like to have the money up front but ya gotta think about it
Duuuude your freakin awesome for this video 🔥🔥
BOOM! This is a game changer Max! THANK YOU!!!!!
Half way threw this video i thought, ill just pay the tax and move on.
🤣
Yeah, especially since with this method you get your earnings dispensed to you over the course of years. At least with the normal tax paying route, I can get a lump sum and make bigger investment plays immediately
This is amazing thank you for sharing! Another way to pay not zero but way less taxes is to set up a business, an LLC or corporation, in a state such as Nevada or South Dakota which have no personal income tax and no corporate income tax. So you would only have to pay the federal corporate income tax (if you set up a corporation). I'm looking into setting up an LLC for my investments. I'll look into this way as well!
Would you do that when you take gains (convert crypto to FIAT) or would you do that just to hold crypto? What do you mean exactly.
Can you expound on this?
Well explained! Thank you. I could seriously listen to you all day long.
Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months.
Started with 14k in last month 2023..
Wow that's huge, how do you make that much monthly?
I'm 37 and have been looking for ways to be successful, please how??
@@AnitaRays
Have you not heard of Lauren Hopkins ?
Woah for real? I'm so excited. Lauren Hopkins strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started
I'm new at this, please how can I reach her...!?
This was the first video of yours I've ever seen and instantly liked and subscribed. Thank you for the info and research you did to make this video!
I'm glad I was able to provide value! Welcome aboard!
Max this is fantastic thankyou for putting this together. Been asking myself this question for years and I’ve found the answer! Cheers!
Found this video and subbed.... This video, literally, saved me probably close to $30,000. Thank you SO much.
Get some Kendu! $KENDU on $ETH is going to print this cycle. At the very least, just do 15 minutes of research on KENDU.
The fact that trading a coin into another coin is a taxable event is an absolute scam. If you trade 1 ETH for 20 LTC, and had that 1 ETH appreciate by $1,000, you have not realized $1,000. You have only now obtained 20 LTC. You do not have an extra $1,000 and did not purchase a good or service. I think the cost basis should just be whatever you put into your original crypto, and your realized gains should only be when you sell a cryptocurrency coin for Fiat currency or a good/service.
Who cares make me rich..and I agree
10000% agree. "they" can just decide to do whatever random whim they want.
Agreed
Remember it's not the full 1000 you have to pay, the 1000 is taxed because it appreciated. If it went the other way and it depreciated, it benefits you as it counts as a loss. Either way, it's stupid
You are trying to reason with criminals who are intent on taking wealth. Reason only works with those who would help you hold the criminals accountable.
So you avoid capital gains tax of 15%, but pay even more with income tax on the annuity payment after 5 years (no more deduction)?
The family members receiving the Life insurance will also get that settlement tax free
Yep, just subscribed. Video is literally overflowing with value!
Do I have to worry bout taxes if I’m around the 10k area?
Mmm not really
@MaxMaher do you have any book recommendations on learning the basics of taxes.
This is legit the only video on CRT’s that I could actually wrap my head around and I’m convinced I need for the future (I stand to lose a ton to crypto taxes in the next few years). Thank you so much for this! At what point is a good time to set one up? Like even right now well before I cash out?
He copied it almost word for word from this guys video
ruclips.net/video/7CMks9_PVqs/видео.html
how much would you lose? I guarantee it would be alot, lot, lot less than me (not saying that you are completely broke) but investments from your minimum wage job do not count as a ton of crypto lolololololol
Depends on when you want to sell. You need the crypto assets already in the CRT at the moment you wish to sell, which means by then you’ll need to have set it up already
@@warpedwhimsical yeah I figured, it’s just that it costs like $5000 to set up and idk how much I’m going to profit from my investments to make it worth it for me. I guess it doesn’t hurt to just talk to an estate attorney just to get a better idea if it’s for me. Thanks for your help!
@@SummerBaby728 Find a good CPA.
I hope someone from IRS doesn't watch this video
Can't thank you enough for this educational video. I've been wondering if there was a legal way to go around capital gains tax. Thanks again, Max!
I never subscribe so fast in my life thank you sir
Protect Max at all cost, the tax man be quivering on these videos
Thanks Max for the video. Do you recommend any crypto friendly banks in the us? Thanks for any tips
I don’t get it. A breakup of before and after would be good to illustrate the savings. From my understanding, with the elaborate system of the CRT I would get tax benefits for around 150k$ but would be subject to income tax whenever I would drain the CRT. I would assume to pay more than the initial 125k$ capital gains tax as initially proposed. Am I missing something?
My understanding is- You can't drain the CRT so not tax will be paid on the assets in it. You basically, on his example of 500K, would get yourself an annuity that pays you approx 7% lets say. So you would get 35K annually for the rest of your life but you can't touch the 500K, if you used his way of doing this. Then using the annuity income you'd set up an irrevocable life insurance trust for 500K (life insurance on yourself) so your kids or whomever you want will get the equivalent of your assets in the CRT. And the charity gets the CRT assets. Make sense?
Wow. I am impressed! Awesome content. I just subscribed to your channel!
Awesome! Thank you, Nitin!
Max's content is first class...
@Max Maher. If i get paid annuity of 7% from 500 grands in CRT, won't it be exhausted at one point, maybe in just 14 years there will be nothing left in the CRT right?
Max this was great information
I would argue a better way is just sell under $50k per year and you will be I. A low cap gains tax bracket and pay little cap gains anyway. Also many people have lost or had some crypto stolen which can be written off against cap gains.
I just think that I'll never sell or trade my Sats. As the asset ages and becomes less volatile, borrowing against it will become cheaper and less risky.
Hey, good video. I like the sound of the mic youre using. Could you tell me its name please?
Which charity should I donate to?
Either childrens hospital, or veterans charity wounded warrior.
Institutions dealing with Long Covid research 🙏 It’s debilitating. Along those lines, Fibromyalgia, MCS, CIRS.. that corner. So much more research needed. More and more people affected. It’s exponential. Not talking about the actual viral infection, but the chronic lingering form of it.
Veterans wounded warrior
I'm pretty much a charity, how you feeling about donating to me?;)
You can donate to me too 😁
Awesome information 👏 👌
Holy moly! I love your content!
Glad you enjoy it!
Double also !! 😂
Quote!
This didn't age well
@@MagicalLisp why not?
Hey brother! This is some really, really good information! I came across your channel late at night, and I could not go back to sleep knowing this lol thank you so much for sharing!
How to pay zero tax: HOLD!
You still pay crypto tax if you hold tho correct?
@@tomn9975 not if you never sell!!
@@virtue696 then how do you ever spend your crypto? You need to sell to spend it
You can hold but still some day you’ll have to pay taxes on it.
@@Rebelz173 You borrow against your crypto Holdings and sell to pay off the loan month by month 😎
Question: Can my CRT take the cash and invest into dividend stocks? My plan is to have the CRT invest into dividend stocks, then the dividends are paid to me as an annuity?
Although you get the 30-40% deduction on the original donation, you have traded your 20% marginal long term capital gains taxes for a 37% marginal rate for ordinary income on the annuity. Congress may also decide to increase those rates, but you will be stuck paying them since this is the only way you can get your money out.
But isn't the ordinary income tax on the annuity payment separate then the principal amount of the asset being held in the CRT? Its extra money on top of the asset so the 37%, or whatever tax bracket your in, is on extra money earned not on the asset or cypto sold, the 500K in his example. Correct? Or am i not understanding something about what you said?
@@rawandreelwithdaryldonna1624 As I understand, there are two types of CRTs and your video covers the Annuity type. As far as I can tell, the Annuity trust only pays you back the same value you put in originally (i.e. on a deferred basis), and any investment gains would go to the charity. Charitable Remainder Unitrusts on the other hand pay out depending on the marked-to-market value of the account. They also allow for subsequent additional contributions, which the Annuity does not. In this case, you can personally share on the benefit from the increased market value. However your video seems to describe the Annuity type.
@@quixoticPrancer, so could I set up the annuity to pay 20% a year? He said at least 5% but used 7%. Is there a max % per year number? And what if I just leave it as cash? No gains = no money for charity but also no risk to the original investment which means I’ll eventually get the 500k back?
@@KK-sg5gl There are a bunch of rules that dictate the max % payout per year. But as far as I can tell, you can't ever get out more than 100% of what you put in with the Annuity-type CRT, regardless of the withdrawal schedule.
@@KK-sg5gl NO, you must leave the expected amount to the charity or the IRS will cancel it and all your benefits and you will have to pay back all your tax savings and years of interest and penalties. So, you HAVE to make some money investing your CRT each year to make up for what you take out. Whatever your tax deduction is calculated to be in the beginning, that is what has to be remaining for the charity.
Thanks. That's pretty cool
You are so welcome!
I just want to get this completely straight...so after 5 years of 60% deductions to the trust, we THEN sell?
Sooo.. the 5 years of deductions isn't selling??? I'm confused on that one detail.
You get 5 years deductions on your personal taxes when you donate it to the CRT. The CRT can sell it whenever it wants and pay no taxes because it is a charity.
You don't sell the BTC to the CRT, you donate it to the CRT. You then take a personal tax deduction over 5yrs for the charitable donation you made. Later, the CRT can sell the BTC within the trust, and being a charity, the CRT doesn't pay cap gains tax. The CRT can then use the proceeds of that tax-free sale to purchase an annuity, or life insurance policy, on you.
@@Paul-jp8zz So do you take the value of the BTC as soon as it's donated? Then do the math on that? Also If you don't convert the BTC to usd, leave it in a crpyto wallet do you collect 8% of the BTC back?
@@ratedmark4704 Once its donated you can deduct the value at 30-40% approx over 5 years. You can't collect personally any money once you've donated the the CRT but the CRT can purchase an annuity with you as a beneficiary and you can collect the interest payment on that annuity annually until you die so depending on your age you can over many years make more money than the asset was originally worth at the time that you donated it to the CRT. And within the CRT you can trade it and stake and whatever you want to grow it but it grows for the charity. You can purchase and set up a trust for life insurance for your family and pay that from your annuity interest payments so your family gets some money when you die. But you can't touch the CRT assets. This is how I understand it.
K so a little confused.
So 500k divide that by 35k yearly payment equals 14 years of payments.
So what happens when all the money is used as payments?
If you are being paid 35k a year and the money is not being invested then obviously it's going to run out.
This is just beautiful! I've been meaning to research this, but have yet to do so. Thanks Max!! 🤘👊
Appreciate the detailed breakdown! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
I appreciate you and everything you’ve taught me ! Keep up the work
Good info Max, Thanks
More complicated than the math behind quantum physics and general relativity. Not to mention expensive.
This is legit the best video on the crazy crypto taxes in america that i have ever watched. I am rewatching this and making notes!
Crypto should not be taxed anyway, its your own money that has already been taxed before, its doubke dipping getting taxed again, the value of your money just increases.
Thiefs
That’s literally the same as any other investment you’ll make in your life. If you make money in any way shape or form, you’re paying tax
@@ryand1668 that does not address what I have said.
Aorus_Gaming96 yes it does? If you buy a house with money you have been taxed on, when you sell the house you get taxed on profit. It’s double dipping, same thing.
@@ryand1668 dude it doesn't address what I said, all you are doing is repeating what im arguing, and advocating against.
Need more of those every day wow thank you!
Hey Max, thanks for the info, but also for sharing your incredible hair with the world. 😂
thank you much for your many ideas
Don't sell, don't pay tax.
Then it's pointless. Nothing more than a collection.
@@magicalchemicaldaddy3919 sarcasm
@@magicalchemicaldaddy3919 you could get loans against your crypto holdings
@@XavierV37 at the limit of 20% of the collateral
@@XavierV37 and how the loan works? You borrow $20000 against $100000 for a year , then it goes down 50% .what do you do then?
Moving to Puerto Rico, is not an option to me, but this info is super valuable to me. My current gains exceed 1.3 million in stocks, not including other gains in crypto. Great video, thanks a million.
Here to help, I’m specialized in setting these up with our tax & estate planning team.
Great strategy. Cash-value whole life insurance works well (better in fact) in this case where you described using an annuity. That way not only does the charity get the BTC proceeds, and you get access to cash while you're alive (tax free) but your family gets the death benefit (which should by then be much more than the 500k) when you're gone rather than spending their remaining years pissing and moaning that you left your BTC to a charity instead of them.
what is the best state to set something up like this? I'm looking for a new place to live in the new year...and this strategy sounds wonderful on paper. Just trying to figure out the logistics and all the missing pieces I need to make it real,
Whole life policies are based on a projection and never payout as you are told. This is a waste of money. Buy term and invest
@@cozycabin752 That's actually not true. I've had policies for 20+ years and they have performed better than the "non guaranteed" illustration and when I do die, they will pay out exactly as is contractually guaranteed. Do your own research. Regardless, this is besides the point for the strategy he's describing.
@@lancepartin7271Right here to help, it’s what I’m specialized in.
Great video and contribution to society. Keep it up.
Not so simple and may not end up as predicted here.
This is well informative, thank you. Subscribed. ☺
My tax is being taken care of, I have never had issues with tax since I started working with my pf manager, she's been outstanding.. I just save, stack up
Wow incredible, I've been looking for means to start up from the scratch , I've lost alot and i need full guidelines,. How do I meet this person you speak of
@@alexbury724 I met her on a trading convention center here in Tennessee, I was bold enough to tell her my problems and she helped me absolutely, I have no issues at all
You can get to her via
TE|le grm
Her ID is
JONES BBQ AND FOOT MASSAGE!!! SHOUTOUT!!!
And frigging stellar presentation. What they don't want us to know! You earned a sub, buddy. 🥖
This is great IF you’re a US citizen, but potentially in some other countries that might have something remotely similar. Question, by selling, do you mean you typically pay capital gains when selling from BTC back into Fiat USD or even if you sell into any Alt coin?
We like to call those people Foreign Nationals, yes this strategy still works and it’s what we specialize in to help people like you.
Do you have any input or advice on how to learn technical analysis to trade crypto, or even stocks? Books? Videos? Classes? I have been looking and have not found, Thanks!
Man's really ended with "I'll donate to charity" after showing how to manipulate a charity for your own tax benefits. As if he isn't about to just got
donate capital gains to his own charity 😂
Am I missing something? The point is not to “not pay capital gains tax,” the point is to not lose your money. If you pay regular income tax on the annuity, which is the same percentage as long-term capital gains tax anyway from my understanding, you are still losing that money to taxes, merely stretched out over your lifetime of annuity payments instead of the one tax year following your crypto sale.
Great video, but if I make millions in crypto, I’ll just simplify it: pay the tax, keep the cash, & never have to think about it again 🤷♂️ I’m not greedy…
For real though lol how many pennies do we really need to save.
I have no problem paying my taxes. It's the way my dollars are spent that pisses me off lol
EXACTLY what I plan to do in a few months, pay my 23% in long term. I will.not have to look over my shoulder for the taxman.. sleep easier, and I don't mind paying some taxes, freedom is not free and I don't mind helping out the poor and needy... but we do need to do something about these billionaires and corporations paying ZERO in taxes..
Back in the old days when we didn't have 40 F***ING PERCENT CAPITAL GAINS TAX
Sounds like this is an option if one completely didnt want to invest that asset any more. But why wouldn't they. Why wouldn't one just keep it invested while you sell small percentages of your asset total per yr. Going this route of the trust seems like it would cost you more by missing out of all the gaining potential of the asset.
Or it's only part of the investment?
Best Video on RUclips and even the whole web on avoiding capital gains tax on our crypto. Thanks Max! You just got yourself a new subscriber. I'll share on social media and let others know about you.
Love hearing things like this. Thank you Damien!
I strongly recommend to take a look at the work that the people at Valur are doing to help everyone keep more of their hard-earned gains :)
Details on short term capital gain taxes pls
You have to pay for all the short term capital gains just as if it was income from a W-2 job. (Which means, depending on the income, you might pay as much as 39% of it as tax. Ouch.)
Long term capital gains (assets held for a year or more before being sold) could be as low as 0% federal income tax. (But you also must pay state income tax, which might be 13% in California for high income earners, or a 5% US average, or 0% if you live in certain states.)
Jones BBQ and Foot Massage! You have an excellent taste in humor! OG RUclips content right there!
Had all my ETH since back in 2017. I'm living off the passive income staking it on NEXO at 5%. Then I have ETHE and GBTC and it's up too. I'm buying land now. Loving life!
A simple option is to borrow against crypto assets with interest only loans
Congratulations
If you put money into this, does it have to remain in cash? Can you invest money that is inside of something like this?
Just when I was thinking about crypto taxes
Stocks are good but I swapped and invested in forex and cryptocurrency I've been earning much from it 💵
Bitcoin is the future, Investing in it now will be the wisest thing to do especially with the current rise
Crypto has been the best 👌
Been investing in the crypto world for 2yrs now I can say its really profitable
@@susanangela568 Yeah no doubt the crypto market has earned me alot you just gotta understand the market
Good content. Thanks!
It's way less complicated to
1. Keep your crypto in an IRA that lets you trade
2. Borrow against your btc and never sell.
Never sell or hold long term?
I agree but this sounds great for people, like me, who already own alot of crypto and can't put into an IRA after you've purchased it :(
This information was quite useful. Thank you.
Glad it was helpful!