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How to Avoid Paying Taxes on Cryptocurrency and Bitcoin



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hello everyone Benson be out of here so

I wanted to talk about how to avoid

paying cryptocurrency taxes so really in

other words I'm gonna give you so ideas

of things that people have done I'm not

promoting that you do this just giving

you kind of an overview and I've done

this video before but it was pulled from

YouTube when they had that kind of weird

flagging thing of crypto videos so I

decided to go ahead and redo it because

haunted touch on some things that you

know I think are important now they were

approaching tax time you know I talked

about Montero - in a previous video for

privacy and Yatta Yatta so anyway a few

things to remember now this kind of

applies for the United States but I'm

gonna talk about you know some things to

kind of apply worldwide the first thing

to remember is that I think a lot of

people forget a lot of people don't

understand though they get only freaked

out about tax time right they panic and

so they just go ahead and they file or

turn okay you don't want to do this if

you're uncertain or you have money

that's a go it's unreported or weird

things going on just just avoid filing

because you can skip a year or two or

whatever because you can back file yeah

there's gonna be some penalties but it's

not a big deal okay nobody essentially

it's not a criminal

it's not a criminal in summer it's not a

criminal case for not filing okay yeah

it's a criminal case when you file a tax

return and your information or you

smudge figures that's criminal I gave

you those so don't panic people panic

they just file something and it's like

it's a lot better not to file that to

file something that has lies on it okay

and like I said you can pack file for

years and the US government can only

audit you seven years in the past so if

you manage to you know skip out for like

seven years and that other stuff doesn't

really count I'm not saying you should

do this obviously I'm just telling you

that the criminal part of it comes from

lying about it okay so if you if you

stopped filing forever eventually

they're gonna hit you and I get you with

the full seven years that they can okay

you're gonna have to pay that because

they're gonna do a civilly you know like

they're gonna get their money

still refused to pay it can turn into an

affair we can end up in jail but I'm

telling you as far as small things it's

more about lying in tax returns also for

small amounts of money they don't even

waste of time on charging you you know

they're just gonna send you a bill that

shows what you go with interest and you

make a payment plan you know they're not

even gonna give you a payment that's not

inconceivable because they want to get

their money okay so as long as you

comply you paid now in the long run

you're better off spearheading this

situation from the beginning getting the

information you need and reporting all

of your income you have to be careful

because like anything that uses your

social it is reported income I give you

two so it's it's not advisable to hide

money I give itto that's just my you

know my advice there's a lot of things

you can do to reduce your tax burden and

I'm gonna discuss those but as far as

cryptocurrency you know you're better

off paying and you know I've known some

people okay that actually you know

didn't file for a few years because

sometimes you take losses and yet I've

come out ahead still you know back

filing rather than filing every year

simply because every time you sell say

BTC for ETH that's a taxable event and

so people don't understand this is kind

of like you know a 401k you know as long

as you buy Bitcoin and you hold it it's

not taxable as soon as you bring it back

to cash or you create a taxable event

that's worth taxable so your best bet

when investing cryptocurrency isn't

doing as much active trading unless

that's your thing and you know what

you're doing with active trading but if

you come across new cryptos just buy

into the new cryptos don't go BTC to

that you know what I'm saying now with

coinbase there's tons of options and

cryptocurrencies available you can buy

directly you can buy directly altcoins

what I'm going to go BTC to then the out

coin difference being taxable event and

non-taxable event what it's investing

and it grows and then you only have to

report it once you cash it in or you

create a taxable in the other one every

time you trade and that's when it gets

really complicated

I'm either gonna iron out a lot of those

details when it comes to you know

training because it's ridiculous but you

know and that's another thing you have

to be careful you seeing these cards

I'll give you them like that the visa

that connects to your crypto wallet

because every time you sell that BTC to

load on to that card you're creating a

taxable event so it just depends on how

much you're using it cuz the more money

you use the more you might get the

attention of the IRS you understand a

lot of people smudge numbers maybe done

their tax returns it's not something I

always say I do or I courage but I'm

just saying so so it's kind of a gamble

on whether or not you're gonna get

picked right if you're in a small

business or you own an LLC or anything

like that you're a high party of getting

audited a better chance of them finding

out also if you got sent letters from

coinbase not from coinbase but they

gathered a bunch of information about

traders and it's speculated that

coinbase leaked that information to the

IRS I think there was certain parameters

you know you're talking about almost

close to a hundred thousand dollars in

you know cash in and out of an account

within a year for them to have sent out

a letter you know kind of flagging you I

didn't receive a letter and you know I

did about a hundred grand for sure that

first year I don't really use coin race

anymore but I did in the very beginning

so I don't know maybe hopefully those

things came into effect once I really

what say using coin basis actively as

they used to I don't know but it's

something to look out for so overall

when if you want to reduce your tax

burden it just depends you know if

you're an average trader you know go

with buying and holding that's the best

solution for you long term if you don't

and you're an active trader then you

know kind of look into more laws and see

if maybe you want to back file if you

haven't already but definitely don't

file and lie and if cryptocurrency has

become a you know a big thing for you

and you've made the million or more or

you need even just half a million

dollars and it's a substantial amount of

money

you might want to look into moving to a

jurisdiction where you can save money

this could be somewhere like Wyoming or

Texas this is how many state income tax

or could be somewhere like Puerto Rico

which is a territory of the United

States but does not tax capital gains a

lot of people don't know this but this

is why I love the crypto people like

that these gonna tell to the sois

wearing a cowboy hat I don't know - how

many or what his name is but what I'm

saying is this could be an option you

won't even have to live there full-time

I think what do you need to establish

residency I'm at a residency in other

states you just say that you know you

stay like six months in a day in another

state Nikki kicked out as your primary

you know so you buy yourself a house in

Puerto Rico you Airbnb the out of

that place to create some some vacation

rental income and you live wherever you

want right that's the same thing people

do and in New Hampshire just random talk

there's no taxes on your tag you're like

you know like there's no taxes on your

vehicle also New Hampshire is the only

state in the United States that does not

require you to have car insurance so you

can actually not even get liability car

insurance obviously if you're making

payments on the vehicle that's something

that's required from your insurance

company so you still have to but if you

cause paid off don't have to have it

live for your die that's what I'm

talking about

so there's a lot of Ferraris a lot very

exotic cars registered in the in New

Hampshire you know if you're into

investing cars and might be

something to look into I don't think New

Hampshire has a lot of state taxes they

don't have state taxes or anything like

that

liquor super chic super shite no super

cheap out there the only promise you

know a lot of these states they make up

for it by taxing property really high

New Hampshire's depending on the county

and the city you know property tax can

be a little high one of the places that

has no state income tax no sales tax

like that and has one of the

lowest property tax rates of the entire

country

can you guess what state is Wyoming boom

which it's also a very popular state for

to incorporate LLC's for a variety of

reasons you know I'm not a big Nevada

fan you can do New Mexico is best for

privacy so a lot of people do it a New

Mexico LLC and then that l2c on to

Wyoming LLC anyway that's that's a whole

nother ballgame but I just wanted to

give you guys kind of on

idea or that kind of stuff so if you're

wanting to trade crypto from the get-go

and you're you know concerned about

privacy you concerned about taxes is

there a way to get your money into

crypto in a way that is you know not

tracked back to you obviously this is

for speculative purposes you know not

educational I'm not telling anybody to

do this well as the years go by it is

becoming more and more difficult to do

so with the KYC compliance and all this

other going on that requires people

to register you know Bitcoin ATMs when

they first came out you could deposit

money and get yourself some crypto super

high feet I get it but you would not

have to put in your social or anything

now I'm hearing more and more Bitcoin

ATMs do require sometimes kyc compliance

so that's becoming an issue

another option is local bitcoins okay

and I'm actually heard of people getting

locked up criminally charged for not

having a license to sell cryptocurrency

that are working through local bitcoins

and stuff like that to sell direct and

there's a lot of scams out there so

nothing gonna be very careful so overall

you may not have a you know a lot of

options biggest issue is getting USD

into crypto from the get-go he's been

getting into crypto I can either you

just put it on a wallet that's not

connected to you whatever gains and

whatever happens boom you have that

right but you know local bitcoins that's

still trying to find one of these it's

difficult there are a lot of small

exchanges and wallets that are

international that you can go and get

the money like wired to them but as soon

as your wiring I mean you gotta have a

US bank account first right so unless

you already have an overseas bank

account you go do a censorship that can

become very difficult so it is

definitely becoming harder and harder to

encrypt the currency that way only the

way I know is to create a product or

service and accept cryptocurrency as

payment okay then boom you kind of

square on that as long as you handle

your business you do it too cold wallets

or wallets that are kyc compliant

other than that you know if you know of

any options for people you know leave it

in the comments cuz that might be an

interesting thing to explore

and I'm and I you know I talk about this

stuff it's just for educational purposes

just to know what's going on just like

we talked about the dark web and we

talked about how people are getting

caught on the dark web and trace back

and I discuss some of that in my

previous video it's all things that are

good to know so that's kind of the four

one one ultimately you have to take into

consideration your personal financial

situation and how much is it worth it if

you have a family and you're already

established in the United States and

stuff you know it's difficult to take a

move even moving to another country like

Billy's or Portugal or somewhere that

doesn't have capital gains tax you know

you're still looking at an exit fee to

renounce your US passport that's true

your citizenship I say passport because

the passport is kind of the token to

establish citizenship you got a u.s.

passport you're a US citizen right so

when you United States is one of the

only countries that taxes international

income meaning if you go for a year and

work in Germany the United States once

it's cut and if you decide okay why I'm

no longer gonna be a US citizen if you

have certain I think it's over a certain

amount certainly above a million dollars

there is an exit kind of tax so that's

also something you may want to look at

you know Roger Vere right ver how do you

say of Bitcoin cash you know renounced

his US citizenship after he went to

prison I believe for like you know

sending fireworks through the mail some

like that I don't know what he was

doing but he went to st. kitts and nevis

which is a place that allows you to gain

citizenship in their country which is a

British passport I believe for either a

two hundred thousand dollar investment

in property on the islands or like a

50th $75,000 donation so that's also an

option then again you got to look at

that exit tax from the United States and

then with a British passport you kind of

live anywhere you don't really have to

stay

on the island or anything like that so

there's a lot of options mainly just

based on your financial situation and

how far you willing to take this I know

in the early days when I got started

there's a lot of people massed a lot of

money if you're a single guy and you can

kind of take flight do your thing

for me you know I just like I like the

United States and I probably would go

live somewhere else but I think that a

lot of places people go to South America

and these places thinking all my money

my dollars worth 10 over there or

whatever and then they're stuck

realizing the place doesn't have air

conditioning it does have a washer dryer

and the the standard of living is much

lower are you just gonna you can hire

somebody for ten bucks to work for you

for a day does it mean that the

amenities that you're used to are going

to cost you more because they're not

standardized in that area and starting a

business and doing different business

ventures especially the tech industry

real estate all that kind of stuff it's

very easy here in the United States so

it's better to use that money to create

something sustainable you want to reduce

your taxes start a small business that

has you know tax advantages and stuff

this is all kind of stuff we can talk

about future videos but there's a lot of

opportunity here especially was trying

to create something sustainable and you

know I think cryptocurrency for me and

for a lot of people gave you give you an

opportunity to see what else is out

there and you know it pretty much an

alternative investment there are

traditional stocks and so I said

nothing I was gonna do monetize the

video I mean some anyway thank you guys

for tuning in if you know usually I do

more funny videos but I want to do a

quick one it was kind of replacing the

old one probably this one sucks compared

to the other one but whatever so if you

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my channel thank you for tuning in if

you have any personal anecdotes or

experiences that you would like to share

please use them in the comments because

I want to hear them I hear we don't

maybe off the V charm or something cuz I

don't know everything so I'm just

throwing things out there maybe start a

conversation thank you guys for tuning

in as always bye red so green and pay

your taxes

blam

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