How To Take Profits From Crypto Without Selling
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- เผยแพร่เมื่อ 2 ม.ค. 2025
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Hi, I’m Lewis Jackson. I’m the creator of the BlockFlow Program, designed to help crypto investors align their mindset, strategies, and goals to achieve lasting financial success. My journey from working a less-than-minimum-wage job to empowering thousands through my programs and TH-cam channel has been an incredible ride.
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Altcoin Report - share-eu1.hsforms.com/1JBICC3OMSYel7oG3qdf0IQ2b2xzc
I just don’t understand why the govt has to get any money from profits.
They taxed my money when I earnt it.
I brought crypto with what I had left over after rent, gas, electricity, water, council tax, food, bus ticket, phone bill. So I went without everything like clothes or takeaway or cinema or going out for years to buy what miserable amount of crypto I have….and the govt want to basically tax my sacrifices?!
How can this be fair?
Its not
It's highway robbery 💸
It aint fair when its black Sambo.
Dont pay taxes. They aint paying any so why should you.
"Life in the big city."
If you swap a crypto coin/token into another one that is disposing of one and acquiring another. The disposal part is a capital gains event so that won’t work.
That's what I thought too. Although I've not checked the actual wording on the legislation only the .gov website that uses the word "disposes" 😟
So if you were to hold your assets on cold wallets for 12 months move abroad, swap the assets off ramp and you would still be eligible to pay uk tax? I don't see how they can or even try.
@@shipmatessolutions7196 They won't bother if it's a small amount. But if you have a 50k, or 100k or more, then they'll bother. You had to buy crypto somewhere, and there is a record of transactions to which wallet was it transferred to. If you swap or sell, and all of a sudden you have roughly the same amount, that isn't the same transaction because there is a trace. They won't be able to track this for Monero maybe, Zcash, or some other, but they will for XRP, Ethereum, and many many others. To be perfectly honest, the easiest way to make some income is staking, and to be specific, staking Cardano is very easy. You don't have to re-stake it, it is automatically done for you, it literally just keeps dripping on your account. For Algorand you have to vote, participate, whatever. But for staking, even if it is taxed as an income, it would still be profitable, and if you decide not to sell those rewards you can look at it as buying at a discount. In future, you will gain much more if you hold.
@shipmatessolutions7196 correct. You have to be out of the UK for 5 full tax years otherwise you are liable and could even end up paying dual tax.
@@shipmatessolutions7196 See my comment above regarding taxable events if becoming a UK NON resident for a period of 5 years, return during the 5 years you are liable to concatenated CGT. It might have been cheaper to pay the tax. You cant escape as the CEX you are using will report your activity to HMRC
Check your facts mate!
Swapping is taxable!!!
I think you’re correct. That’s how I understand the law.
what about a crypto IRA?
@@dsoconn1 That's different if the IRA accepts Crypto as an asset.
I think as long as you are not selling - its true. For example you can lend your coins to a outfit such as Nexo and get yield but not sell or borrow and not sell. With Defi i suspect it wont work as you have to swap to a wrapped version in most cases.
Not in uk
Take loans out against your crypto (tax free) use loan to purchase income producing assets , pay back loan, refinance and take out profits on tax free. You might even be able to do that while parking them in a liquidity pool
"Take loans out against your crypto " - But how would you do this?
Well I would assume the banks will have something set up but I know nexo and vauld both offered such services. They are both going through litigation and restructuring Tho at the moment so I would wait til full legal clarity and utility adoption for that. But it will be an option
also buy gold or silver direct
@@FMOTLGWU where?
Liquid loans on pulsechain. True de fi
Double check your fax. I understand the tax law as once a position is closed. It’s taxable. It doesn’t matter if you swap to another coin or into Fiat.
Use the crypto margin loan to buy a property tax free, Then refinance the cryto leveraged loan with a commercial Real Estate loan and become un leveraged without taxable event and you get your crypto back. Amount owed on the new commercial loan will typically be based on rents from the building so make sure you are buying a property that pays for itself and has a positive cash flow.
Will that work in the uk?
Easier said than done.
In the United States, any time you convert your crypto into anything, not just into fiat, it is a taxable event. If converted under 1 year of holding it, then it's taxed at regular income tax rates depending on the amount. Income taxes are a lot higher taxes than capital gains taxes. It only becomes capital gains after 1 year holding which is 15% under $440,000 and 20% over $440,000.
The gains you make from interest in a pool or from staking is taxable too.
Even crypto retirement accounts are taxable at the time you withdrawal them.
The only way I can see where you are not taxed is for everyday purchases such as food, fuel and groceries.
What generates taxable events is conversions into other currencies, and/or you receive a donation. Although donations could be considered gifts. Gifts are not taxed for the first few thousand dollars if you are single and mark it as a gift(see IRS for amounts).
It is my understanding that withdrawal from a Roth IRA is not taxable.
@@kimzziereenee1638only if it is the contribution amount (under 65) for specific purposes such as buying a home. After you are 65, correct tax free gains.
Confusing are you saying that if you buy things like food gas groceries etc using crypto then your not taxed on it???or just that those things aren't taxed cuz they most certainly are it's called sales tax it changes by state? Unless im missing something?
With XRP you can move your crypto to a paper wallet and physically exchange the wallet. That allows you to spend your coins and creates a tax deductible net loss.
Outside of North America, TJ Maxx is known as TK Maxx. The name was modified to avoid confusion with the British retail chain T. J. Hughes. The European headquarters are based in Watford, Hertfordshire.
You do realise all swap, even between cryptos that are not stable coins are taxable events right?
In the US, converting or swapping crypto is a taxable event.
Unless done on mexc with a vpn, or swapping on hot wallets like phantom
In the UK too I believe
@@jonathanbueltel9853 Yep, that’s called tax evasion. Not going there. Let the government be the bad guy.
if you profit from the swap
@@rod2508 Exactly they cant tax you twice on the same gain. E.g. sell BTC to USDC - gain is taxable event. Convert that USDC to Fiat €, £, $ etc not taxable as already captured in the Capital Gain selling the BTC
I saw an interview with Jim Willie mentioning that XRP was already being used as a currency in Bahrain.
This makes it a tax free way to use our crypto… when more countries and businesses do the same thing
Where? Proof?
I don't see the point of crypto if the government can still see what you are doing with it and tax you on it.
Depositing into a liquidity pool usually entails swapping your coins into a token that represents your position in the LP. That swap would create a taxable event.
Tax avoidance is a question of Jurisdiction. Taxes can be avoided, (In the main part) legally but it will possibly require relocation - which normally requires an income level that makes relocation worthwhile!
Here in new Zealand crypto is classed as a property. If you hold for longer than one year there are no capital gains so no tax
Please bro Please just explain this do we take profits as it increases or just ride it out? I read take and not to take Please explain
Hi Lewis, I planned as am exit strategy to covert to tether gold and hold before possible move over seas
What do you think? Best regards
God bless you on standing up for your position on the war matrix ❤
What do you think on buying gold with XRP? Do you know if this is a taxable event in the US?
The only way I know of would be...
1. Have a 'boating accident' with your crypto
2. Move to a country with no extradition or tax treaty with your home country
3. Remember your private keys, thus re-establishing your crypto wallet
You, however, can never return to your home country or travel to any country with treaties with your home county
It's not worth it for the vast majority of people
Great info Lewis….!
Thanks!
Taxable event is even swapping for other coins as well.
I feel like this is incorrect. But please correct me if I’m wrong. I’m under the impression that if you trade your XRP for ETH, that is a taxable action. Just like when you swap stocks. That’s taxable as well.
Does that no tax event work when you swap cryptos?
If you swap Xrp to RLUSD is that taxable
Buy physical gold direct with crypto?
Paxos has a coin where you buy one coin which is 1 Troy ounce of gold in a vault in England
Great video.. I do have a question though. Isn’t converting the same as swapping? And if you’re swapping, isn’t that a taxable event?
It is!
How can I get the sell schedule workshop link?
Where is the tax? I receive 3 WLDtokens and sell them for cash as i need the money otherwise I would buy ethereum
How can I get a plan In place. Where should I go or do first Lewis Jackson?
Is it double tax if you swap for stable coin then cash out the stablecoin later on?
The best strategy is to convert your cryptos to XMR, transfer them to a liquidity pool, if possible take your dividends in XMR and you wouldn't have to worry about taxes.
I believe that swapping crypto is taxable event, double check it, however if you as American citizen move to Puerto Rico you do not pay taxes from any investments which you made after you move there for 20 years, also if you move there after you purchased crypto and hold long enough you pay very little taxes. Check it with your tax advisor.
Great content Lewis as always , research research and research 👌
what is an A & M ?
Great content, I've definitely saved this, thanks
Q: If your crypto loan is margin called, & your crypto is sold to cover your loan, is the liquidation a taxable event also? How would this play out?
"why am i even doing this?" (paying all these taxes) - You aren't paying for the wars, you aren't paying for the wars or the roads, or the police - you are paying taxes to stay out of jail.
"That’s one way to look at it! Taxes can feel like a chore, but they help keep the system running…even if we don’t always agree with how it’s spent. 😉 On another note, if you’re looking to optimize your financial game, check out my Instagram: instagram.com/lewis.w.jackson/ for tips on building wealth and transforming your mindset!"
I absolutely love your content Lewis, however I think for the first time ever you are mistaken on some things. Here in the US swapping crypto IS DEFINITELY a taxable event. I don't want people hating on you for a silly mis understanding. Thanks for all you do brother much love.
Yeah I’ll touch on that in the next video
If you swap crypto tokens to another token. CGT still applies
If you have the funds, avoid being a tax resident, IE stay in 2 countries for less that 180 days each and any remainder days simply take a short trip to a third country 😊..In SE Asia can buy property and high end watches direct with crypto, subtle off ramp.
Well I like the one idea , but I also plan on living on the interest they generate. Also plan on borrowing against them, letting the interest make the payment. Also plan on doing what the rich do,start a charity or something like. Where I can e the head,also buy a A life insurance and leave it for my family so they don't get taxed as well.
Hey lewis hope all is well, I have a question about AMM'S. So the reason we put our xrp in the pool is to earn on it and help create liquidity for xrp but by doing that doesn't that keep the price of the xrp from going up? If we don't put xrp into a liquidity pool and they have to use for example only the coins they have left to complete transactions then would the value of the xrp have to go up because there is a smaller supply. So I feel like if we provide more liquidity by lending our xrp we are actually hurting ourselves because why would the price have to go up if the have a big enough supply?
from what ive read if you put into a liquidity pool you are effectively taking it out of circulation so the value should go up
@@deanskidmore4495 okay thanks Iam still kinda confused just because why would they offer an Amm if they already had enough xrp, it's like there's not enough and there looking for ways to get more. Maybe Iam way off but idk thanks
Very Good
What is AMM?
Great summary. 🔥
If you wonder why it was 15 degrees Lewis, start looking up ,they create our weather. Geoengineering. Almost every day.
With XRP you can move your crypto to a paper wallet and physically exchange the wallet. That allows you to spend your coins and creates a tax deductible net loss. Alternately you can move to a non fiat stable coin to lock in your profits while riding out a bear market. Since you're never cashing out to fiat you never create a taxable event. Likewise accepting payments in crypto does not create a taxable event unless you cash out to fiat.
So how could you SAFELY put your crypto into a liquidity pool account????🤔🤔
Happy to hear!🎉
Great video Lewis
Could you do an updated on video on this topic please as I’m not sure if there has been any changes or new developments. Thanks so much
Thanks for your comment! That’s a great idea-I’ll definitely look into updating this topic since developments happen fast in the crypto space. Stay tuned, and in the meantime, feel free to check out my Instagram for updates: instagram.com/lewis.w.jackson/. 🙌
I thought swapping coins in taxable
it is. 👍
10:17 but do you have J-Mart instead of K-Mart?
So tokenize is like a 1031 ex
I think you are wrong… IRS is looking for people to use conversion because the conversion is taxable if you have a gain on original crypto.
But, you are correct about charity
not sure how things are where you are, but pretty shure converting from crypto to crypto is a taxable event as well. every crypro has a value, and selling it, for whatever you sell it to, is taking profits and the value it has at time of converting is the gains you got. just imagine being in court, i think there's no judge in the world who wouldn't see it this way. even if you don't convert directly bitcoin into fiat, the moment you convert, bitcoin has a certain value, and this profit taking is taxable, no matter what you buy with it. it's also not a somple transaction, if the assset that arrives is a completely different one, that is clearly a purchase.
It’s all good that you borrow against the value of your Xrp at its peak, but when that price drops you’ll be left with paying the difference, so best spend that loan wisely
I was audited by the IRS for swapping eth to xlm. They still consider that a sale and I was subject to capital gains tax. I ended up having to pay a few thousand dollars to the irs. So be careful when you say swapping from one crypto to another is not a taxable event.
What exchange did you use to swap?
In Denmark swapping/converting Taxable. They say its the same as selling.
Are you taxed on unrealised gains per year as well in Denmark?
@@phil2443 No we are not but they are talking about doing so from 2027
🚀🤑 XCN is about to rocket 🚀🤑
You're doing a fantastic job! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). How should I go about transferring them to Binance?
Do not type your seed phrase or passwords publicly, or share it with anyone else.
My top pick for this bull run are Verasity, Illuvium and Xeventy. The last one has the biggest potential.
The US IRS has ruled that LIKE KIND exchanges are not taxable. HOWEVER.. the restrictions are very narrow! XRP to ETH? is taxable because they are not the same functions. Silver to gold? Is taxable Because they are are different elements. Gold bars to antique collectable gold coins are different so taxable. The only way I can see swapping as not taxable is stable coin to stable coin or borrowing against your coins. I have spent days and weeks researching this.. you could gamble and try selling tokens outside the country and then converting funds into PayPal. But it's probably only a matter of time before you are caught.
what is T-K-Makx?
oh, I just learned something. Didn't know it was a thing.
Set up a self directed IRA (Traditional or ROTH) and trade inside that.
Why can't I lend a stable coin to the bank to get a laon? Risky to me.
XRP price will be more stable in time i think a bear Market will be less in utility coins the purpose will not go away price will be more stable what do you think about that
How do I get the exit strategy workshop?
lewis-site-9af0.thinkific.com/courses/90MinuteExitStrategyWorkshop
lewis-site-9af0.thinkific.com/courses/90MinuteExitStrategyWorkshop
Its will be interesting to see what the tax situation will be like when everything is tokongnized ?
Great content, as always! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). What's the best way to send them to Binance?
Why are you grilling the man? Everyone makes mistakes, that does not give you the right to burn him at the stake! I don’t see any of you helping the community! Ignore those comments and keep up the good work! ♥️♥️♥️
I’ve just checked the UK HMRC guidelines on crypto and it clearly states that converting a crypto is a taxable event in the UK. Can you please clarify what country this is in taxable in please? Many thanks…
I was guna ask the same question. HMRC say "disposing" of a digital asset is a taxable event. Disposing is basically selling into Fiat currency, making purchases by spending the cryptos or swapping into another crypto currency. Please explain Lewis, surely you know something we dont
You're right. Conversion from crypto to crypto is still a disposal event and therefore taxable.
If you remain in the UK. Of you can off ramp you will be taxed to the maximum amount possible on all trades swaps etc. Thats why so many are leaving the UK and the Government are making that harder also.
He also states about keeping hold of your XRP and delegating it. It might be a legal manoeuvre to legally avoid tax. I'm sure they'll close that loophole nearer the time
In Romania, crypto is taxable only when is exchanged to fiat.
Yes Lewis 🫡 you forgot to mention the rain😂👊🏼
Top man Lewis ❤x Thanks for your videos they really do teach and inspire me my friend x
Glad to hear it
Incorrect for australia…. If you have coin A that goes from $1 to $1000 then swap it for coin B, not into fiat, that is still a taxable event snd tax is due on the $999 amount coin A went up.
swapping or converting from 1 crypto to another is the same as selling it is a taxable event in America it's still considered a sell and buy
I’m in the UK. Coinbase and Uphold have closed my accounts with no true explanation. They did allow me to take my assets through. My question is, where can I sell in the UK and cash out into my UK bank account?
You leverage it when it gets big enough you borrow against it to buy other assets that give you income that's how you profit without selling
I like the loan strategy but would never collateralize more than 50% at 50% so if you had a million you take a loan on 250,000 and the most they could margin call on would be the original 500,000 in collateral in case it drops in value leaving you another 50% of your crypto remaining plus the asset your purchased with the $250,000 loan
I don't get what you are saying. Is it that you would borrow 250000usd against 1000000usd to reduce chances of margin call? That would be like missing the bullrun altogether, wouldn't it. If the alts drop 99% you would be left with 10,000usd if you had the full million. I am sure I misunderstood you.
What's the name of the lending institution in Switzerland? Thank you bud
Lol if you don't know, you don't qualify
Why would you want cbdc???!??!?
To avoid crypto taxes. Start an entity in a tax friendly country, transfer your crypto to that entity, then cash out as you please. Theres a little more to it then that but thats the idea.
You pay tax on the money from the country where you brought the crypto i heard Lewis say.
So the idea is, u transfer all your cryptos to that entity before the crypto moons. Minimal taxes due here
You've got this wrong quite wrong - Converting one crypto into another is a taxable event. Airdrops are taxable events, migrating to a new smart contract is a taxable event. e.g if your token is migrated to a new smart contract and you receive an airdrop for v2 while liquidity is pulled from V1, you will pay tax on 100% proceeds from the sale of V2.
Just an FYI swapping coins is a taxable event
The only trick to avoid tax that I have discovered is buy XRP ETF and put it into a stocks and shares ISA.
Earning trading fees by participating in liquidity pools is a great idea except…if you don’t actively manage it, you will likely lose from not taking profits before market downturns. The concept only pays in a sideways or rising market. Crypto to date is only sideways during mid-bear market. So…yield farming is great but only during the right periods of the market. The biggest mistake newbie’s make is not taking profits after a runup, a lesson I learned the hard way.
If you do the loan and get a margin called, so what. You still have 50% of the value of crypto from the loan. You can top it up a little to stop the margin call if you choose. If you sold your crypto, the tax is 50%, anyway, on crypto less than 12 months old. You're not really any worse off. It's a tax either way. If over 12 months you're better of selling, if you feel a big bear price incoming. I think utility is coming quicker than anybody is expecting keeping the prices higher for ISO20022 tokens, and selling could be the wrong move this time. Just pick a path and hope you chose right. If your not selling don't borrow against anything at the peak prices, wait till they seem bearish and then borrow. That gives you some room. If the price does bottom into a heavy bear market, you essentially missed the bullrun. It's a mugs game, just guessing, so maybe diversify how you exit and/ or stay in the market to see what works best.
Wasn’t the first lawsuit calling Xrp a currency? If that’s the case you shouldn’t have to pay tax on currency appreciating… May not be for all crypto but they called Xrp a currency 🤷♂️ thoughts on this?
Thoughts on nexo anyone?
Apparently ive heard that there is 1 way you can legally and effectively at least in the USA , but not sure if same rule applies in UK x
Can you not just not declare your sales?
I'm sorry but you're providing incorrect information and this is very damageable to your audience. If you swap a token for another one, you generate a tax event at that very precise moment.
So if you swap XRP for a tokenized asset, it will be considered a sale of XRP, at the current market price. And you'll generate a profit or loss based on your average cost. Then, you'll buy your tokenized asset and that will fix its own base price.
You need to read your tax laws better and stop providing incorrect info to your audience please.
Great content!
Can someone explain this tokenisation of assets to me im not following it?
Like if someone tokenised their house and i bought the token do i own the house or something is it like a deed, i really don't understand it lol and if its not wtf would i buy it what is it ? Lol
What do you think about Jasmy
Put your crypto in a Discretionary Trust (30% tax instead of 45% tax if eg.,you make $180k+ in a financial year.
I thought swapping tokens is a sale/taxable event
It is
sorry to break it to you but swapping one coin for another is a taxable event.