LIVECryptoEmbassy
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How to 𝐋𝐞𝐠𝐚𝐥𝐥𝐲 avoid taxes in crypto 101 ?
2) When you make a certain amount of money in crypto you want to lose as little as possible on your earning right? We already paid money on our income and we need to pay even more on the risk we took. When we lose money no one's here to reduce our taxes either. Unfair right?
3) Although it 𝐡𝐢𝐠𝐡𝐥𝐲 depends on the country were you live, there are some ways to reduce the amount of taxes you pay without breaking any laws. For some of you maybe 𝐚𝐥𝐥 of it. Some of you might try to pay nothing but that's not sustainable long term.
4) Low profits Doesn't matter where you live or what the specific laws of your country are, if you aren't making a lot there's almost no tax to be paid. Don't bother mentioning your crypto earnings in your tax report if it's very acceptable numbers.
5) You don't need to pay taxes when someone gifts you 500-1000$ either. If you aren't withdrawing money on a monthly basis from crypto or it's not a huge sumn there's absolutely no risk of an investigation either. And if there is they won't sue you either for it.
6) Having a job :
This one is pretty huge. Many people look to quit their jobs once they can fully replicate the income from their regular job. It's here where most totally get it wrong
Most countries offer less or absolutely no taxes when you do crypto on the side.
7) They look at your profile whether you are a professional trader or a non-professional one. "The good house-father profile as they literally call it" It's hard to argue and say you are an amateur if you don't have a job. It's hard to argue you are a progressional if you do.
8) No job?
They treat you like a full self-employed individual like any service you offer. This means your taxes could go as high as 50% depending on your income. Brutal right? • 2k job + 10k crypto income = 12k • 10k crypto income = 5k Full time crypto right?
9) This is an example btw but a side income will always pay less taxes. Only go full time if you really earn 𝐭𝐡𝐚𝐭 𝐦𝐮𝐜𝐡 or you already withdrawn a lot to make you last really long. Full time crypto is great but doing it to early isn't. Calculate the difference.
10) Crypto debit card
This is my personal favorite. You don't need to pay taxes on something you don't withdraw. Many people would argue this isn't legal but it is if they can't ever know. Governments have acces right to your bank.
11) If you don't submit your taxes on what you have withdrawn to your banks that's fine. But eventually they will find out and see. Crypto however is being your own bank. If you don't give them your hardware wallet no one knows what you have. That's the whole point.
12) Although some countries like mine (Belgium) have a different stance on fiat withdrawals and crypto transactions. I don't have to pay taxes on those anyway. But if you do I wouldn't really go and tell them: Hey here's my hardware wallet. I also went to bed at 9pm yesterday
13) Want options? I've been using @cryptocom for years. Binance their crypto debit cards also work. They are both partnered with visa so you can use them almost anywhere. Restaurants, groceries, vacation trips, cash withdrawals,... You name it.
14) Hodl
There's a big difference between countries as well on this one. Some countries allow you to remain completely tax free if you buy and hold an asset without ever trading it for 1 full year. Many however don't know the entire story of this.
15) Sometimes this law is only valid when you bought a crypto with fiat and never traded it. But not when you made 100 swap transactions first and held the last asset for a whole year. Keep this in mind! Countries like Portugal for example do.
16) No matter how many transactions you did, the last obtainable needs to be held for at least 1 year. Even holding stablecoins are accepted. A legal loophole. Make sure to double-check this with your local laws.
17) Relocate
If nothing else works you need to relocate. This is the last option but definitely necessary when you have no choice. No one's going to move by making 5-10k dollars on the side. But when you made life-changing amounts like millions you do.
18) In this scenario you have so much money that giving up x amount of taxes is like working for a lifetime. Your visa debit card isn't going to cut it and you have to much money to still be working. My best friend had to forcibly choose this option.
19) He had no plans to ever relocate and no dreams to live in another country either. But because He made millions and we live in a country that's heavy on the laws no legal tax evasion was going to cut it. Some things you can't pay with crypto either.
20) I pay for everything with my crypto debit card. But you can't buy a house without fiat in the bank.
21) That's it
For most of you these options will save you any amount of taxes you would normally have to pay. Laws are only laws if you strictly fall onder the category for any of those.
22) Loopholes are very common and have been widely used for decades by individuals. There's a reason why so many lawyers are specialised in the tax industry and why so many individuals pay next to none while others pay everything. Make use of it. It's legal.
3) Although it 𝐡𝐢𝐠𝐡𝐥𝐲 depends on the country were you live, there are some ways to reduce the amount of taxes you pay without breaking any laws. For some of you maybe 𝐚𝐥𝐥 of it. Some of you might try to pay nothing but that's not sustainable long term.
4) Low profits Doesn't matter where you live or what the specific laws of your country are, if you aren't making a lot there's almost no tax to be paid. Don't bother mentioning your crypto earnings in your tax report if it's very acceptable numbers.
5) You don't need to pay taxes when someone gifts you 500-1000$ either. If you aren't withdrawing money on a monthly basis from crypto or it's not a huge sumn there's absolutely no risk of an investigation either. And if there is they won't sue you either for it.
6) Having a job :
This one is pretty huge. Many people look to quit their jobs once they can fully replicate the income from their regular job. It's here where most totally get it wrong
Most countries offer less or absolutely no taxes when you do crypto on the side.
7) They look at your profile whether you are a professional trader or a non-professional one. "The good house-father profile as they literally call it" It's hard to argue and say you are an amateur if you don't have a job. It's hard to argue you are a progressional if you do.
8) No job?
They treat you like a full self-employed individual like any service you offer. This means your taxes could go as high as 50% depending on your income. Brutal right? • 2k job + 10k crypto income = 12k • 10k crypto income = 5k Full time crypto right?
9) This is an example btw but a side income will always pay less taxes. Only go full time if you really earn 𝐭𝐡𝐚𝐭 𝐦𝐮𝐜𝐡 or you already withdrawn a lot to make you last really long. Full time crypto is great but doing it to early isn't. Calculate the difference.
10) Crypto debit card
This is my personal favorite. You don't need to pay taxes on something you don't withdraw. Many people would argue this isn't legal but it is if they can't ever know. Governments have acces right to your bank.
11) If you don't submit your taxes on what you have withdrawn to your banks that's fine. But eventually they will find out and see. Crypto however is being your own bank. If you don't give them your hardware wallet no one knows what you have. That's the whole point.
12) Although some countries like mine (Belgium) have a different stance on fiat withdrawals and crypto transactions. I don't have to pay taxes on those anyway. But if you do I wouldn't really go and tell them: Hey here's my hardware wallet. I also went to bed at 9pm yesterday
13) Want options? I've been using @cryptocom for years. Binance their crypto debit cards also work. They are both partnered with visa so you can use them almost anywhere. Restaurants, groceries, vacation trips, cash withdrawals,... You name it.
14) Hodl
There's a big difference between countries as well on this one. Some countries allow you to remain completely tax free if you buy and hold an asset without ever trading it for 1 full year. Many however don't know the entire story of this.
15) Sometimes this law is only valid when you bought a crypto with fiat and never traded it. But not when you made 100 swap transactions first and held the last asset for a whole year. Keep this in mind! Countries like Portugal for example do.
16) No matter how many transactions you did, the last obtainable needs to be held for at least 1 year. Even holding stablecoins are accepted. A legal loophole. Make sure to double-check this with your local laws.
17) Relocate
If nothing else works you need to relocate. This is the last option but definitely necessary when you have no choice. No one's going to move by making 5-10k dollars on the side. But when you made life-changing amounts like millions you do.
18) In this scenario you have so much money that giving up x amount of taxes is like working for a lifetime. Your visa debit card isn't going to cut it and you have to much money to still be working. My best friend had to forcibly choose this option.
19) He had no plans to ever relocate and no dreams to live in another country either. But because He made millions and we live in a country that's heavy on the laws no legal tax evasion was going to cut it. Some things you can't pay with crypto either.
20) I pay for everything with my crypto debit card. But you can't buy a house without fiat in the bank.
21) That's it
For most of you these options will save you any amount of taxes you would normally have to pay. Laws are only laws if you strictly fall onder the category for any of those.
22) Loopholes are very common and have been widely used for decades by individuals. There's a reason why so many lawyers are specialised in the tax industry and why so many individuals pay next to none while others pay everything. Make use of it. It's legal.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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