@21:16 Mark mentions the first question on the 1040 tax return for is, "Did you buy, sell, trade any sort of cryptocurrency in the last year". This is somewhat misleading because it doesn't state it in that way. Last years question #1 is states as, "At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?". So, if you purchased, say Bitcoin, and you have held it the entire time and didn't cash it in, then you would answer NO to this question. I think he's directing this towards "traders" but still, it doesn't state "buy".
The dollar generally loses between 20% and 30% of its value over a 10-year period due to inflation. With current economic conditions potentially accelerating this depreciation, paying taxes in one lump sum now and investing that money could be more advantageous than spreading out payments over time. Inflation can erode the purchasing power of your savings more quickly, and this long-term reduction in value can be likened to a form of taxation, as it diminishes the real value of your money
Thanks for the nice explanation. Like you said, CRUT distributions are taxed, which is higher than Cap Gains. Sure, they are off-set by the charity deduction for 5 years but eventually you'll be paying even higher taxes on your gains. I'm not so sure the numbers work out in your favor.
That's what I'm seeing. $120,000 income. 25% tax per year, just say $20k, plus $20,000 per year in life insurance? So, $40k per year, then the $8k lawyer startup fee. In 7 years you'd be around the same tax bill as when you started. Oh, and charity gets the rest of that money. So, you turn $1.2 mill into, say, $10 million in 20 years...and that $10 mil goes to charity, you've got nothing left from all your effort. OR you pay the $300k in taxes, have $900k to invest yourself. $900k just in the SPY for 20 years would turn into $6.5 million...and you can give, say, $500k to charity instead of $6.5 mil. Maybe I'm not seeing something, but CRUT seems like it only makes sense if you don't expect to live more than ~10 years.
The problem with all of your loopholes is that in every example you no longer have your coins in your own wallet. The whole point of crypto is to hold your coins in your own wallet that nobody can seize and that you can take wherever you want so that nobody has control over your wealth except you. Your loopholes could be broken with one new law written in and the coins could be gone. Keeping your coins on cold storage you can just stay on chain until taxes are actually fair, and if they never become fair you can just leave and bring it all with you and go somewhere else.
What his strategy is is to avoid tax when you sell. If you are holding the coins in your own wallet you will not be tax and we would not have a problem. Price will go up and down though so what you have you must be sure it will stay the same or always go up or else you could be holding on to dead coin if you don't take profit.
That’s not true. All the strategies you hold your own private key (except for the simplified ROTH IRA with Gemini) but you can avoid that as he mentioned by setting up a self directed ROTH IRA or 401k and then an LLC inside that ROTH can hold your crypto. With this LLC, you can have as many hardware or hot wallets as you wish and your LLC / ROTH own and control the private keys.
It makes sense to have a good plan, the issue is most people wont do this, just because they're lazy. Im moving to Puerto Rico and will put some of these systems in to affect. Nice video
No. IRS already thought about that and it’s called a prohibited transaction. Prohibited transactions are certain transactions between a retirement plan and a disqualified person. If you are a disqualified person who takes part in a prohibited transaction, you must pay a tax.
As a beginner, it's essential for you to have a mentor to keep you accountable. I suggest Miss Stephanie Aaron Trentham is extremely good on that. She is really good on what she does, Now I can pay so many bills because of her help.
The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional but it's very advisable you make use of professional.
Wait… I just calculated using a rough approximate CRUT table. If I put in 20 million into a CRUT, I get 10% a year, I don’t touch the amount in the CRUT so it stays at 20 million. I have to pay California tax rates… at the end of 20 years I only get 13m. Which means I effectively lost 7 million to taxes. That’s 35%. Now if instead we calculate that I use 1 million to make 20 million so a 19 million increase for long term gains tax. In California for that long term tax I need to pay 6.8 million in taxes. Bruh. wtf. It’s the same shit. For me I’d rather just pay that 6.8 million in taxes now and get it over with. CRUT only pays a max 10% a year and is limited to 20 years. YOU WILL NEVER GET YOUR ENTIRE AMOUNT BACK. IF YOU PUT 20 MILLIES IN THERE, THERE IS GOING TO BE 2-3 MILLIES THAT YOU WILL NEVER EVER SEE AND ITS GOING TO BE “CHARITY”. After calculating the numbers… IT DOESNT MAKE SENSE. The ROTH makes more sense.
The CRUT is a different strategy for a different situation. For example, you can only contribute to a Roth while you are working; outside roll-overs from traditional accounts. So you're right, the Roth is a better strategy while you are working and have yet to max out the contribution limits of the standard and mega back door methods. CRUTs are only good instruments for tax savings; if you intended on donating that money to your charities, but would like to do so in a more tax advantage way. I hope that helps. Different tools for different sets of facts.
QUESTION: If I create a CRT, will the money I receive in payments be considered earned income or investment income? As a retired individual, that has not yet reached full retirement age, will the income from the CRT effect my Social Security retirement payment if the payments exceeds that maximum earned income allowed???
Thank you Mark, Excellent!! You’ve given me back my hope! Haha. Quick question: for strategy #1, you only mentioned crypto. Can this strategy also be applied to stocks or real estate investments? I'm in my 50's and I own some BTCs Stocks etc. I have a full time job and I love trading and I'm about to invest in a property. What do you think is the best strategy for me? Thanks again!!!
As an enthusiast, I would like to know the most effective strategy during this period of volatility with the rates? My portfolio is in (20% Index funds, 20% ISA/SIPP and other assets). Right now I want to explore different strategies to benefit from a potential bubble.
Initial enquiries seems need to set up a self managed super fund SMSF. From there can setup a crypto account. Drawback is that yearly fees for SMSF are around $4k-$6k so really need a substantial account to make it worthwhile. NFA
Thanks for the tips. I’m a 17 year old planning to start a crypto mining corporation next year and you helped answer some of the things I didn’t know about. Thank you.
Great video. I have a question regarding to the trifacta. Do you recommend adding a WY or DE LLC as the parent company before the revocable living trust? THe layout would be passive LLC and operation LLC all report up to a WY LLC and then WY LLC goes to the RLT 1040? Thank you so much for your videos, it is very informative.
My understanding is if you work for an employer that has a 401k then you are limited in a traditional or a Roth IRA for allowed contributions. Now if you have your own business that is all different. Or am I wrong ?
what if for example you accidentally misallocate the crut? For example buy all kind of property and expensive luxury items. there’s no money left for charity. What happens next? Will IRS track you down for not donating to charity
Hi Mark Very interesting and this video really got my motor running , which at 81 is hard to do ..haaa thank you and I signed up for the Aug 22 event...Bud
Why the f would you go through all this bs to setup a charitable trust and risk some shady lawyer screwing you over when the distribution is still taxable? Instead of selling 1 million in 1 shot, just sell 10% each year…it’s the same as getting a distribution from charitable trust without all the headaches. Pretty stupid…only reason to use this is to protect the money from creditors which isn’t a problem for most people unless you are Rudy Guliani
Yes, you can too. Mark provides great strategies to help people take control of their tax and financial situations. He has even trained people like me, to help viewers, like you, bridge the gap between his general advice and a trifecta tax strategy tailored to your needs. Are you ready to being? Hit up Mark's Tax Advisor Network and book a free client interview to start your journey.
Hi Mark- thank you for this information! I have a question about strategy #2. Over twenty years ago when I left my first job, I had a small amount in the companies retirement fund and I transferred it to a Traditional IRA (I didn't understand the difference in implications back then between Roth and Traditional). It was a small amount and grew somewhat over the years. This spring, I changed the fund my Traditional IRA invests in to one of the new Bitcoin ETF's. If I make some money from cypto trading- can I put some of it into the traditional IRA for a tax break? (I assume since it's a traditional and not a Roth I would have to pay some taxes when I go to withdraw from it at retirement but didn't know if I could still have a tax break from it)?
Mark, an organization owes crypto to me. Can I have them send the crypto to my CRUT, instead of me? They would get the deductions and I get income, correct?
That scenario would be long term capital gains tax no? If you bought way back when and are now selling it should be considered long term capital gains tax no? 15%?
I think I would rather pay the $300,000 in taxes. And have $700,000 in my account instantly not 100,000 each each year. I mean when you’re talking about this kind of money does it even really matter it’s like winning $1 billion lottery sure, you’re gonna have to pay 400 million in taxes, but you still have 600 million in your account at the end of the day 🤷🏼♂️
I was getting really excited about this until he mentioned only about 10% of the FMV is a tax deduction, and it's over 5 years. I was hoping to be able to do a massive backdoor IRA conversion and not pay taxes on it. Granted, it looks like the concept could still be done, but just not as much and gradually over time instead.
@21:16 Mark mentions the first question on the 1040 tax return for is, "Did you buy, sell, trade any sort of cryptocurrency in the last year". This is somewhat misleading because it doesn't state it in that way. Last years question #1 is states as, "At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?". So, if you purchased, say Bitcoin, and you have held it the entire time and didn't cash it in, then you would answer NO to this question. I think he's directing this towards "traders" but still, it doesn't state "buy".
Versidium is bridging the gap between traditional finance and crypto. Revolutionary!
I am LOVING this. Now, I just need my 10,000% gain on my crypto!!!
Please tell us how much money in gains to consider CRUT?
The dollar generally loses between 20% and 30% of its value over a 10-year period due to inflation. With current economic conditions potentially accelerating this depreciation, paying taxes in one lump sum now and investing that money could be more advantageous than spreading out payments over time. Inflation can erode the purchasing power of your savings more quickly, and this long-term reduction in value can be likened to a form of taxation, as it diminishes the real value of your money
Being tax exempt is beautiful 😎
Love your channel Mark!! I always learn so much from you and your associates every time i listen! Thanks for your attention to detail!
Thanks for the nice explanation. Like you said, CRUT distributions are taxed, which is higher than Cap Gains. Sure, they are off-set by the charity deduction for 5 years but eventually you'll be paying even higher taxes on your gains. I'm not so sure the numbers work out in your favor.
That's what I'm seeing. $120,000 income. 25% tax per year, just say $20k, plus $20,000 per year in life insurance? So, $40k per year, then the $8k lawyer startup fee. In 7 years you'd be around the same tax bill as when you started. Oh, and charity gets the rest of that money. So, you turn $1.2 mill into, say, $10 million in 20 years...and that $10 mil goes to charity, you've got nothing left from all your effort. OR you pay the $300k in taxes, have $900k to invest yourself. $900k just in the SPY for 20 years would turn into $6.5 million...and you can give, say, $500k to charity instead of $6.5 mil. Maybe I'm not seeing something, but CRUT seems like it only makes sense if you don't expect to live more than ~10 years.
The problem with all of your loopholes is that in every example you no longer have your coins in your own wallet. The whole point of crypto is to hold your coins in your own wallet that nobody can seize and that you can take wherever you want so that nobody has control over your wealth except you. Your loopholes could be broken with one new law written in and the coins could be gone. Keeping your coins on cold storage you can just stay on chain until taxes are actually fair, and if they never become fair you can just leave and bring it all with you and go somewhere else.
What his strategy is is to avoid tax when you sell. If you are holding the coins in your own wallet you will not be tax and we would not have a problem. Price will go up and down though so what you have you must be sure it will stay the same or always go up or else you could be holding on to dead coin if you don't take profit.
That’s not true. All the strategies you hold your own private key (except for the simplified ROTH IRA with Gemini) but you can avoid that as he mentioned by setting up a self directed ROTH IRA or 401k and then an LLC inside that ROTH can hold your crypto. With this LLC, you can have as many hardware or hot wallets as you wish and your LLC / ROTH own and control the private keys.
Self sovereign individuals hold their property in their name.
@@borngreat8962 yeah meaning you don't own or control your own private keys, your shady tax loop hole that could get closed by the gov holds them.
You control the trust, you control the wallet.
This is unbelievable, when I cash out, I’ll definitely hire this guy
Mark!! You need to buy XRP.
You Are Welcome
You forgot to deduct the accountant and lawyer fees from the pie. lol...
Cost way less than just selling 😂
I've heard of CRT's, but this CRUT is sparkling like a gem. I have a Roth Solo 401K which is amazing- so many tax-free investment options.
Bitcoin is the answer!
Xrp
It makes sense to have a good plan, the issue is most people wont do this, just because they're lazy. Im moving to Puerto Rico and will put some of these systems in to affect. Nice video
How about just saying fuck the govt and taking that $1.2M to another country and never worrying about the USA again?
Is there a way to transfer already purchased crypto into a Roth without selling and rebuying?
No. IRS already thought about that and it’s called a prohibited transaction.
Prohibited transactions are certain transactions between a retirement plan and a disqualified person. If you are a disqualified person who takes part in a prohibited transaction, you must pay a tax.
How about discussing the CLAT?
Vematum's technology is next level! So glad I found this early.
he didn’t talk about that but ok
Thank you.
problem that i see is that we are exchanging capital gains tax for income tax. high earners would prefer to take the capital gains tax than income tax
Now that bitcoin etf is approved, What is the best strategy to enter crypto trading for someone with more or less than $5,000 to invest?
As a beginner, it's essential for you to have a mentor to keep you accountable.
I suggest Miss Stephanie Aaron Trentham is extremely good on that. She is really good on what she does, Now I can pay so many bills because of her help.
This is correct, Stephanie strategy has normalized winning trades for me also and it's a huge milestone for me looking back to how it all started.
Yes, I agree with you. Her platform is wonderful and her strategies are exceptional.
The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional but it's very advisable you make use of professional.
Please how can I reach out to her easily?
Can you setup a CRUT while retaining the private keys?
Good question!
If you own the CRUT you own the keys.
@@thankdrew1173 But do you hold the keys?
Wait… I just calculated using a rough approximate CRUT table. If I put in 20 million into a CRUT, I get 10% a year, I don’t touch the amount in the CRUT so it stays at 20 million. I have to pay California tax rates… at the end of 20 years I only get 13m.
Which means I effectively lost 7 million to taxes. That’s 35%.
Now if instead we calculate that I use 1 million to make 20 million so a 19 million increase for long term gains tax. In California for that long term tax I need to pay 6.8 million in taxes.
Bruh. wtf. It’s the same shit.
For me I’d rather just pay that 6.8 million in taxes now and get it over with.
CRUT only pays a max 10% a year and is limited to 20 years. YOU WILL NEVER GET YOUR ENTIRE AMOUNT BACK. IF YOU PUT 20 MILLIES IN THERE, THERE IS GOING TO BE 2-3 MILLIES THAT YOU WILL NEVER EVER SEE AND ITS GOING TO BE “CHARITY”.
After calculating the numbers… IT DOESNT MAKE SENSE.
The ROTH makes more sense.
The CRUT is a different strategy for a different situation. For example, you can only contribute to a Roth while you are working; outside roll-overs from traditional accounts. So you're right, the Roth is a better strategy while you are working and have yet to max out the contribution limits of the standard and mega back door methods. CRUTs are only good instruments for tax savings; if you intended on donating that money to your charities, but would like to do so in a more tax advantage way. I hope that helps. Different tools for different sets of facts.
Don’t forget the tax deduction and you can get a lifetime CRUT.
QUESTION: If I create a CRT, will the money I receive in payments be considered earned income or investment income? As a retired individual, that has not yet reached full retirement age, will the income from the CRT effect my Social Security retirement payment if the payments exceeds that maximum earned income allowed???
Great question. It does appear earned income as he states it.
Thank you Mark, Excellent!! You’ve given me back my hope! Haha. Quick question: for strategy #1, you only mentioned crypto. Can this strategy also be applied to stocks or real estate investments? I'm in my 50's and I own some BTCs Stocks etc. I have a full time job and I love trading and I'm about to invest in a property. What do you think is the best strategy for me? Thanks again!!!
Great advice Mark. Thanks.
Simply Brilliant. Thank you!
Enjoyed the video. Thanks for sharing
Great insight and advice man, Winning!!!
Very informative, thank you
As an enthusiast, I would like to know the most effective strategy during this period of volatility with the rates? My portfolio is in (20% Index funds, 20% ISA/SIPP and other assets). Right now I want to explore different strategies to benefit from a potential bubble.
Do I get taxed when I transfer my stock to IRA account from my regular trading account?
Can you please make a video for people who are in australia?
Initial enquiries seems need to set up a self managed super fund SMSF. From there can setup a crypto account.
Drawback is that yearly fees for SMSF are around $4k-$6k so really need a substantial account to make it worthwhile. NFA
You don't report period
Two guarantees in this world, death & taxes...
Can this strategy apply to forex XAUUSD short term gain?
Thank you love the insight
Unrealized gains are taxable?
Bought NVDA22K after watching your video, super excited! 💰
Excited about NVDA too! It’s great seeing our investments grow together. Let's keep it up! 🚀
Feeling good about NVDA! Great community and potential.
Looking forward to NVDA's growth!
Thrilled about NVDA's potential! Happy to be part of this community and looking forward to gains!
Feeling positive about NVDA's future!
Thanks!
Thanks for the tips. I’m a 17 year old planning to start a crypto mining corporation next year and you helped answer some of the things I didn’t know about. Thank you.
Good luck!
What do you think of cardano?
what can you tell me about XRP, Ripple or XLM an how to buy and protect it
Great video. I have a question regarding to the trifacta. Do you recommend adding a WY or DE LLC as the parent company before the revocable living trust? THe layout would be passive LLC and operation LLC all report up to a WY LLC and then WY LLC goes to the RLT 1040? Thank you so much for your videos, it is very informative.
Thank you mark!!!!!
Thanks for the advice! Got NVDA22K, feeling bullish! 🚀
Versidium is the real deal. Get your VRS tokens before it's too late!
Great video; thank you :)
What can we do in Australia....anyone have any similar info for AUS
Probably unable to use existing revocable trust for this application.?
Can you still add an IRA
if already retired?
NVIDIA backed token - BicoIai is gonna be massive.
Best AI I've used so far, incredible accuracy
This thing just rendered me a video with the sound, i mean nobody could detect that it's an AI. BicoIai is gonna be huuuge!
WOW. Just like me, my portf is 80% Bicolai.
Hopefully this one will crash my 6 limit :)
I mean if NVIDIA backed it, it must be super cool :)
Can I move from
BitcoinIRA to Gemini?
As I always say, it’s amazing what’s legal when you have enough money.
Very interesting information, hoping I'll need the service soon. 64yo, I'll have a few years to Enjoy as a crypto millionaire. ✌️😎
My understanding is if you work for an employer that has a 401k then you are limited in a traditional or a Roth IRA for allowed contributions. Now if you have your own business that is all different. Or am I wrong ?
Does this work for new york state residents
Awesome, I actually have a charity already and plan to give most of it to that. I wonder do I need a CRUT?
Can u do all that after u bought bitcoin?
Can I move crypto from my wallet to the Crypto IRA or Roth Crypto IRA????
What happens when they change the tax laws?
We find new strategies.
what if for example you accidentally misallocate the crut? For example buy all kind of property and expensive luxury items. there’s no money left for charity. What happens next? Will IRS track you down for not donating to charity
Hi Mark
Very interesting and this video really got my motor running , which at 81 is hard to do ..haaa thank you and I signed up for the Aug 22 event...Bud
Why the f would you go through all this bs to setup a charitable trust and risk some shady lawyer screwing you over when the distribution is still taxable? Instead of selling 1 million in 1 shot, just sell 10% each year…it’s the same as getting a distribution from charitable trust without all the headaches. Pretty stupid…only reason to use this is to protect the money from creditors which isn’t a problem for most people unless you are Rudy Guliani
I’m sure the target customer for this strategy are for people who are making a ton of money already
Knowing is half the battle!?
Thanks
I dont suppose the CRUT stradegy works for a Canadian?
Who are your tax lawyers that can help, where do you find them? Your website is not showing them?!
Makes me feel like I can take control of my retirement.
Yes, you can too. Mark provides great strategies to help people take control of their tax and financial situations. He has even trained people like me, to help viewers, like you, bridge the gap between his general advice and a trifecta tax strategy tailored to your needs. Are you ready to being? Hit up Mark's Tax Advisor Network and book a free client interview to start your journey.
Is this for the rest of your life? Or 20 years? How is the tax on your % taxed? Ordinary income?
Hi Mark- thank you for this information! I have a question about strategy #2. Over twenty years ago when I left my first job, I had a small amount in the companies retirement fund and I transferred it to a Traditional IRA (I didn't understand the difference in implications back then between Roth and Traditional). It was a small amount and grew somewhat over the years. This spring, I changed the fund my Traditional IRA invests in to one of the new Bitcoin ETF's. If I make some money from cypto trading- can I put some of it into the traditional IRA for a tax break? (I assume since it's a traditional and not a Roth I would have to pay some taxes when I go to withdraw from it at retirement but didn't know if I could still have a tax break from it)?
I love that painting behind you
Who else is counting days for BicoIai listing? 🔥🔥🔥
What about seniors or people on SS...the crut wouldn't work
what about living in puerto rico no income taxes?
How does a person over 70, start a self directed Roth?
Mark, an organization owes crypto to me. Can I have them send the crypto to my CRUT, instead of me? They would get the deductions and I get income, correct?
Can you do this UK ?
Is it irrevocable?
How does SD-IRA work with buying land as an IRA?
I can’t wait for the crypto summit.
WHAT??? 14:11 "Ever, ever, if you are??? (sand lot smalls???)" wot?? no tax ever but what is the if???
Is this the same in europe/Portugal?!
Nice suit also!!!
That scenario would be long term capital gains tax no? If you bought way back when and are now selling it should be considered long term capital gains tax no? 15%?
Long term capital gain is 1 year and 1 day and it’s not fixed at 15% could range from 0-28% depending on your tax bracket
You don’t pay upfront but then you keep paying tax up to the amount withdrawn as distribution!!! It might be higher tax!
Can you put part of your out investment in a crut?
So for strategy number 1, what if you live past 20 years?
20 years or when you die, which ever is longer
Surprised you didn’t talk about tax loss harvesting and wash sale rule not applicable to crypto for the traders??
After 20 years you have to give away the whole account? What if you’re still living?
I think I would rather pay the $300,000 in taxes. And have $700,000 in my account instantly not 100,000 each each year. I mean when you’re talking about this kind of money does it even really matter it’s like winning $1 billion lottery sure, you’re gonna have to pay 400 million in taxes, but you still have 600 million in your account at the end of the day 🤷🏼♂️
Bitcoin and No-KYC - done
I was getting really excited about this until he mentioned only about 10% of the FMV is a tax deduction, and it's over 5 years. I was hoping to be able to do a massive backdoor IRA conversion and not pay taxes on it. Granted, it looks like the concept could still be done, but just not as much and gradually over time instead.
Why does it cost so much to set up a trust
I’m 18 and have five figures in crypto is there any way to save taxes as a teen?
you need to hodl kiddo. your future self as a billionaire will thank you
Cant u just borrow against it?
Is there a wage limit for CONTRIBUTIONS to crypto Roth like normal Roth
What is a “crypto roth”?
Thanks for the insights! Bought NVDA22K, predicting big returns! 📈
I'm All-In
It will soon all over the news
Same here! Exciting times ahead! 🚀
Feeling optimistic about NVDA! 👍
Absolutely! NVDA is a winner! 💪
lets go!!!
Best way to protect your money, don’t vote for a dem
Cheers