HISTORY

The Clock Is Ticking on Your Tax-Free Cryptocurrency Account

Cryptocurrency fever has been sweeping the nation since 2015, when the term “Lambo money” was coined to refer to how quickly Bitcoin investors could reach the benchmark of having enough money to purchase a Lamborghini.

For investors who started buying the digital currency in 2010, when it traded for about six cents a unit, the wait has been well worth it. For those who did not start investing until much later, well, the wait has been far shorter. Bitcoin, for example, gained nearly $60,000 per bitcoin between March 2020 and November 2021.

Now those are some fast returns!

However, anyone who actually cashed out their digital wallet to spend half a million dollars or so on a sports car could have been left holding far, far less than they expected (and barely enough to cover the cost of the “cheapest” Lamborghini model, the $206,485 Huracan EVO RWD Spyder). That is because cryptocurrency gains are currently taxed at the highest possible levels.

The stated reason politicians give for this outsized taxation is that only the “ultra-rich” are making money in Bitcoin (not true - lots of investors are starting from scratch and creating life-changing wealth using cryptocurrency strategies in self-directed accounts just like yours).

The truth is that there is a LOT OF MONEY being made, and the government wants as big a piece of it as possible. In fact, they are currently working hard in Washington D.C. to raise the tax rates on those crypto earnings to 39% - or even higher.

So…

Under the present tax rates, if you earn a little over $600,000 annually with your spouse, little more than $500,000 annually and are single, or just over $314,000 annually if you are married and file separately, your cryptocurrency gains could be hit at a rate of 37.9% (at time of writing). This means that if you made that Lambo money on a pandemic-era crypto heavy-hitter, such as

Bitcoin (gained nearly $60,000 between March 2020 and November 2021);
Dogecoin (at one point there were 1,341 “dogecoin millionaires” thanks to meme-fueled purchases of the joke coin between May 2021 and October 2021); or
Ethereum (the more affordable, widely considered “safer and more affordable” option to Bitcoin that gained more than $3,700 per unit between March 2020 and November 2021)

You would be forking over more than a third of those earnings to our federal government - and the state is going to want a piece of you, too!

That means that if you had pulled $500,000 out of your digital wallet in November 2021 to use your “lockdown money” to purchase that speedy little race car, you would have found yourself owing about $200,000 of it to the government – and that would have been before you paid state taxes as well.

Not much left for reinvestment if you’re not using the TaxFreeCrypto.com solution.

Clearly, there must be a better solution. And there is: a solution that creates lasting wealth that accelerates your retirement capital accrual and protects your assets even while you continue to build up and reinvest your returns…tax free.

3 Easy Steps to Start Investing in Tax Free Cryptocurrency

So how do we at TaxFreeCrypto.com manage to potentially save you hundreds of thousands of dollars that you would otherwise likely pay in capital gains taxes?

Well, the answer is simple: We have the right structures and entities to do it, and we can help you set them up too.

Here’s how it works:

1. Work with our team of experts to set up the best tax-protected account for your cryptocurrency assets.

In most cases, this will be a self-directed IRA. This type of IRA lets you control the assets in your retirement account and protects your earnings and returns as long as you leave them in the account. Since you cannot withdraw money from your self-directed IRA until you reach the age of 72½, that gives most of our clients a decade or more in which to invest, generate returns, and reinvest – all without paying those nasty capital gains or income taxes!

Just imagine what you could do if you earned $100,000 and could reinvest the entire amount instead of forking over between a quarter and a third of those earnings to the government!

Fund your account.

There are many ways to fund a cryptocurrency IRA. Many people discover after they do the initial set-up work that they already have money stagnating in another account and just roll those funds into the new one. This is called an IRA transfer or, if you are moving funds from an employer-sponsored plan into your new self-directed IRA, you may hear people refer to the process as a rollover or an in-service rollover. You can also make an IRA eligible contribution, which means that you put some amount of money into the account based on your eligibility and available capital.

You are almost ready to start trading!

Cryptocurrency often moves fast, so make sure you are working with a custodian like those on our team who are able to accommodate the demands of this exciting, high-potential asset.

Set up the appropriate “wallet” and get started.

Talk to your custodian about the best way to set up your digital wallet and begin investing. The team at TaxFreeCrypto.com recommends using a platform endorsed by your custodian because this will create the best environment for smooth transactions. It’s time to watch that retirement nest egg grow.

HISTORY

The Clock Is Ticking on Your Tax-Free Cryptocurrency Account

Cryptocurrency fever has been sweeping the nation since 2015, when the term “Lambo money” was coined to refer to how quickly Bitcoin investors could reach the benchmark of having enough money to purchase a Lamborghini.

For investors who started buying the digital currency in 2010, when it traded for about six cents a unit, the wait has been well worth it. For those who did not start investing until much later, well, the wait has been far shorter. Bitcoin, for example, gained nearly $60,000 per bitcoin between March 2020 and November 2021.

Now those are some fast returns!

However, anyone who actually cashed out their digital wallet to spend half a million dollars or so on a sports car could have been left holding far, far less than they expected (and barely enough to cover the cost of the “cheapest” Lamborghini model, the $206,485 Huracan EVO RWD Spyder). That is because cryptocurrency gains are currently taxed at the highest possible levels.

The stated reason politicians give for this outsized taxation is that only the “ultra-rich” are making money in Bitcoin (not true - lots of investors are starting from scratch and creating life-changing wealth using cryptocurrency strategies in self-directed accounts just like yours).

The truth is that there is a LOT OF MONEY being made, and the government wants as big a piece of it as possible. In fact, they are currently working hard in Washington D.C. to raise the tax rates on those crypto earnings to 39% - or even higher.

So…

Under the present tax rates, if you earn a little over $600,000 annually with your spouse, little more than $500,000 annually and are single, or just over $314,000 annually if you are married and file separately, your cryptocurrency gains could be hit at a rate of 37.9% (at time of writing). This means that if you made that Lambo money on a pandemic-era crypto heavy-hitter, such as

Bitcoin (gained nearly $60,000 between March 2020 and November 2021);
Dogecoin (at one point there were 1,341 “dogecoin millionaires” thanks to meme-fueled purchases of the joke coin between May 2021 and October 2021); or
Ethereum (the more affordable, widely considered “safer and more affordable” option to Bitcoin that gained more than $3,700 per unit between March 2020 and November 2021)

You would be forking over more than a third of those earnings to our federal government - and the state is going to want a piece of you, too!

That means that if you had pulled $500,000 out of your digital wallet in November 2021 to use your “lockdown money” to purchase that speedy little race car, you would have found yourself owing about $200,000 of it to the government – and that would have been before you paid state taxes as well.

Not much left for reinvestment if you’re not using the TaxFreeCrypto.com solution.

Clearly, there must be a better solution. And there is: a solution that creates lasting wealth that accelerates your retirement capital accrual and protects your assets even while you continue to build up and reinvest your returns…tax free.

3 Easy Steps to Start Investing in Tax Free Cryptocurrency

So how do we at TaxFreeCrypto.com manage to potentially save you hundreds of thousands of dollars that you would otherwise likely pay in capital gains taxes?

Well, the answer is simple: We have the right structures and entities to do it, and we can help you set them up too.

Here’s how it works:

1. Work with our team of experts to set up the best tax-protected account for your cryptocurrency assets.

In most cases, this will be a self-directed IRA. This type of IRA lets you control the assets in your retirement account and protects your earnings and returns as long as you leave them in the account. Since you cannot withdraw money from your self-directed IRA until you reach the age of 72½, that gives most of our clients a decade or more in which to invest, generate returns, and reinvest – all without paying those nasty capital gains or income taxes!

Just imagine what you could do if you earned $100,000 and could reinvest the entire amount instead of forking over between a quarter and a third of those earnings to the government!

Fund your account.

There are many ways to fund a cryptocurrency IRA. Many people discover after they do the initial set-up work that they already have money stagnating in another account and just roll those funds into the new one. This is called an IRA transfer or, if you are moving funds from an employer-sponsored plan into your new self-directed IRA, you may hear people refer to the process as a rollover or an in-service rollover. You can also make an IRA eligible contribution, which means that you put some amount of money into the account based on your eligibility and available capital.

You are almost ready to start trading!

Cryptocurrency often moves fast, so make sure you are working with a custodian like those on our team who are able to accommodate the demands of this exciting, high-potential asset.

Set up the appropriate “wallet” and get started.

Talk to your custodian about the best way to set up your digital wallet and begin investing. The team at TaxFreeCrypto.com recommends using a platform endorsed by your custodian because this will create the best environment for smooth transactions. It’s time to watch that retirement nest egg grow.

Curious about how it all works and how to avoid the same pitfalls that the most successful self-directed investors are avoiding using these powerful account structures? Sign up to receive our exclusive, free guide full of the latest information on how to best manage your digital currency investments and protect your assets. No one else offers this type of insight and education on this topic. Get yours today!