COMPLETLEY THEORETICAL DISCUSSION ON TAX AVOIDANCE

what are some ways to LEGALLY avoid paying the 40% short term capital gains tax on crypto profits over $400k?

alternatively, what are some not-so-legal/gray area ways to avoid it?

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Puerto Rico is a crypto tax haven if you buy some property there and become a resident.

I have looked into this.
This will not work if you made your gains BEFORE you gain puerto rico residency.

For example if you made 10,000% returns on chainlink and you lived in the US during this appreciation, you are still liable to pay capital gains on your link if you gain residency in peurto rico after the fact.

just lie retard?

If you already made the gains you already owe the tax, there is no legal way to avoid that.

theoretically of course

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wait a year
only cash out 52.4k (40k tax free ltcg + 12.4k std. deduction) every year after that
pay zero taxes

How would the IRS even know about the gains? Their reporting seems to be entirely voluntary.

pretty sure you need to provide records proving that the date of your gains is after the date you gained residency retard?

No way to get around it if it's already done.
This is the issue for people who get lucky. The system is trying to make it very hard to make your way into the upper echelons by taxing your luck. Once you make it past 8 figures, you'll have a lot more options for avoiding tax. Right now you gotta focus on making it first, 400k gain is not enough since you'll need to spend well over half of that on setting up the right entities in the best jurisdictions + lawyer fees, etc

does the irs really give a shit about my meager $700 crypto earnings?
I'm not looking to to avoid my taxes but I see myself fucking up when it comes to doing the math on all of my metamask + uniswap transactions which I just learned are all taxable.

hold it for longer than a year?

If you get randomly audited you will get screwed no matter what, even with $700

cash out through bitcoin atm in minecraft

what if you cash out in puerto rico? or some other country.

start company
accept donations
“omg someone donated us $xyz”
pay 21% tax instead of 40%+

nigga we tryna pay 0 here

in minecraft btw

Another user and myself posted a guide on how to do this.

here is a quick high level summary:
Before you cash out go to legalzoom.com and open a 501(c) in your state, register yourself as the president and find a corporate secretary (this is legally required)

Surrender the crypto wallet to the 501c. Open a coinbase prime account using the 501(c) (they are going to request business information)

-Profit.

godspeed brother
i think u could just move to a country in europe that has 0% crypto tax and renounce your US citizenship, then cash out

lol how would they fucking know?
coinbase > wallet a > monero > wallet b > fiat
>i lost my crypto in a hack irs
its that easy

make a uniswap shitcoin with a tornado-cashed alt-account. Rug your main account repeatedly by buying into your fake token pair. Fantastic, on paper now you've lost all your profits and your tornado-cashed account can store all the profits in in dai, frax, or even usdc. When you want the money again reverse the process except now from your main account (create a uniswap pair and rug your tornado-cashed account repeatedly. You can draw out this process over a year to recognize long-term capital gains. Congrats, you now have the flexibility to pay zero in tax this year while banking your gains and in the long-term can shift these gains to long-term capital gains. Crypto to crypto taxation is retarded and unethical enabling exploits like the aforementioned. Crypto to USD makes sense.

As a bonus, name the rugged shitcoins things like AAPL, AMZN, TSLA, and SPY

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another option that could be done in theory totally made up not something i am planning to do but go to some bank in s.e.a sign up for one of the banks that doesnt do kyc ... profit transfer funds into your reg acct that should be a credit union not the big fags (wells,chase,BoA,cap1)

This is stupid. You're asking to get fucked by the IRS. The easiest and safest way to do this is to open a non profit and surrender the funds to the non profit that you manage.

also in minecraft

>Europe
>0% tax on anything
If they could they'd tax oxygen usage.

any KYC exchange is required to report their users every year

Portugal AND Germany have 0% crypto tax, Switzerland also I think.
France is 30% though.

LOL this one is really good

is this an iron clad strategy? You actually know for a fact people have done this successfully?
holy shit, I never thought of rugging myself on uniswap, thats actually kind of clever. Thanks user I definitely won't be considering this in the future because I plan on paying all of my taxes in full.
also for tornado cash, is that full proof? Last time I looked at it the volume wasn't very good. I suppose I could test it myself

can i ask what you guys are buying to get so much profit? my coins are stinkers atm....

thats the only good thing about our taxes.
t. Alberto Barbosa