Can I Sell Ethereum Without Paying Capital Gains Tax?
Hi, I’m Brett Swarts, founder of Capital Gains Tax Solutions. Can I sell Ethereum without paying Capital Gains Tax? The answer is yes. Now, it’s important to understand that once you fully cash out of Ethereum and receive it in your personal account, you will pay tax. It will trigger the tax. But can you sell Ethereum using a Deferred Sales Trust and defer the tax over time? And slowly pay it as you receive it? The answer is yes, and so what are the steps to doing that? It’s actually really simple, and we help people do this, and we’ve done it with high-end primary homes, businesses, real estate, public stock, private stock, artwork collectibles, and now we are moving into the cryptocurrency space. It’s actually very, very simple.
Step one is you set up a Deferred Sales Trust, what does that take? Well, you want to name the trust, and you want to get that set up. We specialize in that here at Capital Gains Tax solutions, and once the trust is set up, a trust has its own EIN, its own entity. That entity that EIN sets up its own account at somewhere, let’s say like a coin base. Then step number two would be to transfer. Here’s the key, you’re transferring those assets to this newly formed sales trust. Now, why would you do that? Well, you’re gonna do that, because you’re asking the trust to carry to owe you what you paid them. Let’s say you sold assets for a million dollars, and you would have paid, let’s say $400,000 of a tax, you’re going to sell it, you’re going to transfer it to the trust in exchange for a promissory note, you’re becoming the bank or the lender. That is step number two.
Step number three is the trust itself will turn around and sell. Now let’s say that million dollars worth of cryptocurrency or a theorem in the open marketplace, and that’s where the cash hits the trust account. This is really important. Because the trust bought and sold, had it for a million dollars, and it was able to sell it for a million, it has a 00 gain because it’s all for the same price. Since you’ve received no actual receipt of the cash yet, in other words, you became the lender, and you lent the money to the trust. Instead of taking that cash from the trust, you’re in a deferral state. So it is a 0 tax event in this scenario, and then what happens is you can live off payments of the trust. These payments are typically structured at 8% interest over any 10 year period of time, and the investments of which the funds can be invested in stocks, bonds, mutual funds, investment, real estate, passive or active, and when you do it all in this order, and you and you make sure you follow the rules, and this is what we specialize in here at Capital Gains Tax solutions, you can sell your Ethereum, your Cryptocurrency, your Bitcoin, without paying capital gains tax for a period of time.
Then as you receive payments or pay ordinary interest on the payments you receive, and if you dip into the principle to pay capital gains tax, so we’re doing a deal right now, this particular client, their vision and their path for financial freedom is not just be able to retire from work but also be able to buy an investment, real estate and live off the cash flow and invest in different vehicles like stocks, bonds, mutual funds, insurance, annuities, and live off payments, and that allows them to spend more time with their family travel lower their stress with having not having to work so much and so that is the power of the Deferred Sales Trust and making sure now you need to make sure that you’re setting up prior to selling anything, you have to do it in a specific order, and that’s again what we specialize here at Capital Gains Tax solutions, you can go to CapitalGainsTaxSolutions.com to learn more about this CapitalGainsTaxSolutions.com and if you are a business professional as well and perhaps a financial advisor, business broker, luxury realtor or you’re in the cryptocurrency space helping people make you know smart decisions as they buy and sell cryptocurrency you can go to eXpertTaxSecrets.com and learn how to start to help people with Deferred Sales Trust that’s eXpertTaxSecrets.com.
Appreciate you watching this video. Please share this with somebody. There’s someone out there who has bought cryptocurrency. Ethereum they bought it right they bought it well and they are scared to sell they feel trapped by this capital gains tax in fact, buying this proposal To take it from guessing what about 20% Federal to is very, very close to about 40%. But double only if you make a million dollars per year but if you’re selling crypto at a certain amount, and that’s above a million, guess what you’re looking at a huge huge tax liability and that could push your income above that and therefore that can hit you. So be very cautious and make sure you plan before you sell again go to CapitalGainsTaxSolutions.com that’s CapitalGainsTaxSolutions.com. Thanks so much.
Closed Deal Story
Selling Bitcoin, Ethereum Capital Gains Tax-Deferred Using the Deferred Sales Trust
I believe that is where we’re at with cryptocurrency’s current marketplace. We closed the first Bitcoin and Ethereum case for $5 million and helped the client defer around $1.5M in capital gains tax. Now we’re getting a wave of individuals who are finding us. You might be finding us right now.
One of the biggest challenges with folks who are selling cryptocurrency is they want to be able to diversify, they want to be able to time the real estate market and or even the crypto market, they want to be able to have some liquidity, some cash flow, and so part of this vision is taking helping our clients who are in cryptocurrency, buy an investment, real estate, all tax-deferred, using the Deferred Sales Trust, also invest with Jake Mellor as the financial advisor to in a diversified investment grade security or start a business. Whatever the outcome that you want to do. Why is it that you’re investing with any type of asset? What if you could sell high, diversify, and buy back in whenever you’d like to? This is what we’ve already done and we’re doing, we’ve already proven it.
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Want to learn more? Check Out The Blogs Below!
- Can a Deferred Sales Trust Be Used for Mergers and Acquisitions?
- How to Defer Capital Gains Tax When Selling Your Cryptocurrencies
- Need An Exit Strategy? The Deferred Sales Trust Might Be the Answer