How to legally bypass crypto currency tax in USsteemCreated with Sketch.

in #cryptocurrency7 years ago

 Are you freaking about capital gain tax on Bitcoin? It’s an awful lot of money. There are some ways to avoid this problem, although not all of them are equally appealing. 

1. It’s time to set up a self-directed IRA 

So what’s a self-directed IRA? It’s an individual retirement account provided by some financial institutions in the United States, which allows alternative investments for retirement savings. The good thing is that the Bitcoin in your self-directed IRA account will be tax-free. The first thing you need to do is to contact a company that helps people to setup a self-directed IRA and inform them of your intention to open a self-directed IRA. The company will send you some forms that will be used for the incorporation of an “investment” LLC. You can also move your money from your 401K your ROTH IRA. According to Internal Revenue Code Section 408, IRS prohibits RA investments in life insurance and in collectibles such as artwork, rugs, antiques, metals, coin (only physical coins). 

2. Become an Offshore-Company, right now 

It’s completely legal and it’s quite cheap. People active in the world of finance often use bank accounts in different countries. Regions such as Belgium, Belize, and even Hong Kong do not have any capital gains for Bitcoin as of right now. However, this activity will still be scrutinized by the government. You should open a foreign bank account at bank that haven’t implemeted FATCA. You can check here http://non-fatca-banks.com/ 

3. Using foreign bank account 

You can register foreign bank accounts at banks that operates in tax heaven countries like Belize,  Nevis, Cayman Islands, Panama. For example you can open an AdvCash which headquartered in Belize https://advcash.com   


Conclusion: One you finish you’ll only need to sit back and watch your investment grow without having to worry about paying the capital gain tax. 

Disclaimer: I don’t encourage people to avoiding paying capital gains taxes. The methods mentioned above should only be used to optimize your spending. 

After this post, I want to write a series of posts about Bitcoin tax systems around the world. Thank for reading.

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Good idea not sure if you want to mess around with the IRS in the states though.