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trading on non-US friendly crypto exchanges and minimizing tax gains

vit

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vitNew MemberAuthor
Joined
Feb 2024
Messages
3

#1

Hi, I need help regarding two topics:

1) I'm a US citizen and I'm unable to trade on certain crypto exchanges like Binance. Is there a way to get around this issue?
2) I just paid my capital gains taxes and its ridiculously high (37% tax bracket but compared to what I cashed out vs what I owed to the IRS in 2023, it's like 50% of my crypto cashout). Are there any legal strategies/loopholes to minimize my capital gain taxes? I saw some mentions about setting an offshore company to help with this but I'm a total rookie in this matter. I'd love to know how an offshore company would help minimize the taxes.

Forfeiting my US citizenship is not option as my entire family is in the US. I don't mind traveling around though, just don't want to relocate from my US home.

thanks in advance for any guidance!

jafoHigh-Ranking Operative
Joined
May 2022
Messages
4,061

#2

vit said:

Hi, I need help regarding two topics:

1) I'm a US citizen and I'm unable to trade on certain crypto exchanges like Binance. Is there a way to get around this issue?
2) I just paid my capital gains taxes and its ridiculously high (37% tax bracket but compared to what I cashed out vs what I owed to the IRS in 2023, it's like 50% of my crypto cashout). Are there any legal strategies/loopholes to minimize my capital gain taxes? I saw some mentions about setting an offshore company to help with this but I'm a total rookie in this matter. I'd love to know how an offshore company would help minimize the taxes.

Forfeiting my US citizenship is not option as my entire family is in the US. I don't mind traveling around though, just don't want to relocate from my US home.

thanks in advance for any guidance!

You need to hire a US CPA or tax attorney for this matter.

WellingtonHigh-Ranking Operative
Joined
Nov 2020
Messages
3,599

#3

jafo said:

You need to hire a US CPA or tax attorney for this matter.

Surely...

Find a fund of funds outside of the US, invest in that via a corporation, and only pay tax on dividends.

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