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Smart Tax Strategy All Crypto Investors Must Know in 2022

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Tax Strategy

You’re probably paying too much in taxes. And before you go crazy protesting that we need more tax reductions or tax strategy, let me explain. You know that feeling when you’ve worked so hard for something, and you just cherish it? This could be learning a skill, saving up to buy a car, or graduating from college. Once you have these things, you will do just about anything to keep them.

The last thing you want is to crash a car that you have just saved up for. I think the same goes for taxes. You’ve worked so hard to make money, of course, but saying I want to pay fewer taxes is almost hate speech in some circles. That might be a little dramatic, but there’s a whole lot of protesting. Taxes are good. We need more taxes. We live in a society. 

Yes, I agree that taxes have a purpose, which blew my mind. When I changed how I thought about taxes, what was the government asking us to do? 

The tax code has one line that says all income is taxable unless we say it isn’t. And then they have another line that says no expenses are deductible unless we say they are. Then we have all sorts of charts and graphs telling us how much we should pay. But that’s maybe 30 pages. The existing tax law is over 6,000. The other 5970 pages are just a series of incentives and exceptions to get you to do what the government of any country wants you to do. 

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When you pay taxes, you have a partner. But, unfortunately, that partner is the government. So what does this partner want you to do? And how will they reward you for that behavior? 

I will tell you something that might shock you a little bit in today’s tax law. You’re probably doing it wrong. You can choose to pay high taxes, and the government is wonderful with that. Or you can partner with them, do what they want you to do, pay low taxes, and they’re magnificent with that, too. I would never demonize someone for going on unemployment, nor would I demonize them for trying to save a little bit on their taxes.

Sure, an argument can be made that billionaires need more taxes, but that’s not what today’s article is about. I don’t care about the few billionaires. I care about the average person who is paying too much in tax. So, today I’m going to cover methods that can land you with as little as 0% tax on six and seven-figure profits. And again, this is by working with the government and within their rules. 

Tax Strategy

There are two types of capital gains tax.

So normally, when you sell your crypto or stock for a profit, you’ll pay what’s known as a capital gains tax. There are two major types: short-term capital gains and long-term capital gains tax. 

If you held it for under a year, you’d pay a short-term capital gains tax. Short-term gains are based on your income, which can be as high as 37%. If you hold for more than one year, you will pay for the long term, which is a lower percentage. 

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The Magic of Write-offs

And I have some great news right off the bat for those in lower-income brackets. You don’t have to pay any long-term capital gains tax in some situations. For example, if you held an asset for more than a year, your long-term capital gains would be zero as long as you sold it for less than $41,675 in taxable profit in 2022. This is before write-offs because we have capital losses as well. Any time you invest in something and sell it for a loss, this loss can be written off against your capital gains. 

So here’s an example: Your friend Lokendra has been a bit wild and reckless when it comes to investing. He threw $40,000 into two separate DAOs, promising a reasonable 9.99% Trillion APY. A week later, he sells both of them. One dropped 50%, resulting in a $20,000 capital loss, and the other increased 25%, resulting in a $10,000 capital gain. If he keeps good records, he can benefit from this loss. Lokendra can write off the $10,000 in gains with the $20,000 in losses at tax time.

He’ll pay $0 capital gains tax on those $10,000 of gains. And now, even better, he has the remaining $10,000 that he can use to write off either against future capital gains or $3,000 per year against ordinary income. This is a must-use Tax Strategy if you have any capital losses. Of course, consult with your accountant first, though, because this is for entertainment purposes only.

Tax Strategy
Tax Strategy

Tax Strategy # 1

But losses aren’t exciting. So we want to know how to save against massive gains. One kind of revolutionary method of tax savings is using a CRT. This is one of the few ways to save tax on capital gains after you’ve already made the gains but before you sell. 

How this works is you have a lawyer set up a Charitable Remainder Trust. You send your assets to that trust, which is actually tax deductible because it’s considered a charitable entity. Then, every year you get paid an annuity payment from that trust. This happens until you die. Once you die, the remaining funds will go to a charity you specify when you set up the trust. But what about sending an inheritance to your kids? It’s one of the biggest points of making money.

Many people will do that for their first few years’ worths of annuity payments; they will buy a life insurance policy with their children as a beneficiary. So the tax bill is reduced by doing this; you get payments for life, your kids get an inheritance once you die, and you benefit from the charity at the end. So it’s a pretty neat deal all around.

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Tax Strategy # 2

Next, we have something a bit more controversial. It’s called a “deferred sales trust, or “DST.” The idea is to create a deferred sales trust, and Let’s say you bought $100,000 worth of Bitcoin, now worth $1 million. First off, Congratulations. You would sell the trust your Bitcoin for $100,000 because this technically means you have no capital gains. 

Then the trust can do various things with those assets, like sell them, reinvest in them, or pay you installments. However, many people seem skeptical of this approach because it lands in a legal gray area and can be quite expensive. So it seems like this wouldn’t be the very best option for most people. But I wanted to just highlight everything in this informative article. 

Tax Strategy # 3

Now let’s talk about something a bit easier to do and great, either if you expect to see a ton of capital gains in the future or if you’re a frequent trader. This is amazing. This is called a self-directed IRA.

I have explained IRA in detail over here, Do check this out: Bitcoin IRA

So a self-directed IRA is a retirement account basically in USA. Except being limited to specific investments like stocks or mutual funds, you’re able to invest in all kinds of assets. 

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So, with a self-directed IRA, you can place crypto directly into a retirement account. Let’s do an example using a Roth IRA. We’re investing $6,000 in Bitcoin, the annual contribution limit, into a self-directed Roth. You’ll pay regular tax on the money going into the account, just as you would with any normal investment. But after that, you pay zero tax, even if you trade within that account every day from one crypto to another until retirement. So you deposit $6,000. 

Let’s say you traded your way up to $100,000 by the time you were 59 and a half years old. At that time, you could take your profit of $94,000 and pay no tax. If you’ve done this in a regular account, you’d be hit with a tax on every single profitable trade, lowering your amount with taxes every single time. 

People might now stay away from this because you can’t begin to pull out profits without a penalty until age 59 and a half. But there’s a loophole for this. I’m telling you, there is a loophole for literally everything. 

This is called SEPP. This will allow you to remove funds from your account without a penalty, as long as you spread them over five years’ worth of payments. Doing this allows you to have an early retirement. If you hit it big, you don’t have to wait till 59 and a half. Of course, please talk to an accountant if you want to use this kind of more loophole-type Tax Strategy.

Tax Strategy # 4

Now, remember, there’s not much you can do. After you sell Well, that was a bit of a fib. You can do some things with your profits, but it’s a bit more of an active approach. 

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This is using your profits to invest in opportunity zone real estate. So remember, the government is our partner, and they’re willing to incentivize us to do what they want us to do. The government wants more investment in areas that they deem economically distressed, and you can save a ton of tax by doing what they want you to do. 

Let’s say you were sitting on $1 million in long-term capital gains on Bitcoin. You’d have to pay 23.8% tax if you were to sell it outright. So $238,000 in tax. But if you were to invest the profits into a qualified opportunity fund, or QOF, within 180 days of your Bitcoin sale, you could save a lot on tax, but this depends on how long you’re willing to keep your money within the fund.

The first is tax deferral. Investing your profits in a QOF means the taxes are deferred until either December 31, 2026, or when you sell the QOF position, whichever comes earlier. If you keep your money in the fund for at least five years, then 10% of your profit will be tax-free, meaning you’ll now only be taxed on $900,000 in profit instead of $1 million in profit. At seven years, 15% of your profit is tax-free. 

But remember, you still have to pay tax on the profits from your new opportunity zone investment because that is ideally appreciated as well. 

However, at ten years, you can completely avoid the capital gains tax on the appreciation of your opportunity zone investment on top of your 15% savings on the initial profit. And the idea is by the time ten years goes by, you’ve been able to earn far more money off of that opportunity zone investment. But, again, this is a bit of an advanced Tax Strategy, so please talk to a tax professional.

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Tax Strategy # 5

Now let’s finish off with the most powerful and probably impractical way to avoid the oversight of Uncle Ben simply giving up your US citizenship. To do this, you’ll need to have citizenship from another country, and luckily for you, some countries will just sell you one. 

For example, Lokendra and Divanshu will sell you a passport for $100,000, and you’ll just need to be a resident for five days. The overall process takes about three months. 

This will allow you to travel to 150 countries visa-free, which isn’t bad at all. For ultimate travel freedom, though, you’ll probably want to go with Malta. Malta offers 182 visa-free countries, but you’ll need a fork up around €750,000 and have lived there for a year. However, even this doesn’t mean you avoid current taxes. 

If you meet any of these criteria, you’ll have to pay taxes on assets, even if you don’t sell them before leaving your citizenship. This is called a “Mark to Market Tax.” Now, there are certain exclusions and exceptions to this, but the point is that you’re not going to avoid taxes completely on your exit. 

It is not recommended to do this!

Next, I want to warn you because many people don’t know this and it could cost you a lot of money. If you trade one crypto into another, say Bitcoin into Doge, this is treated like selling Bitcoin and then using the profits from that sale to buy Doge in the eyes of the IRS. 

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So if you have a lot of profits in one crypto, just make sure to consider it before you sell it or swap it into another crypto because that will be a taxable event. And after you sell, the cat is basically out of the bag. So it’s much harder to save tax at that point. 

A Conclusion on Tax Strategy 

So, as you can see, navigating taxes is often a matter of understanding what the government wants and its rules. Once you know this, there are all kinds of creative angles that you can take to pay a more reasonable amount of tax. If I missed any Tax Strategy, make sure to comment on them down below the article post. I hope you have a good day! A sweet wave by Pushkar from cryptocurrencysimple.com.

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Crypto News in Russia & Ukraine War Invasion Conflict !🚀 Bitcoin New Digital Gold in War in 2022?

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Russia &Amp; Ukraine

This crypto news update is regarding the Russia & Ukraine war conflict, how cryptocurrency plays an essential role in bypassing sanctions, and much more! So let’s go!

As you guys know, with the Russia and Ukraine conflict going on, crypto has been in the spotlight lately because there are so many sanctions out; therefore, the Russian government wants to use crypto as a loophole. So basically, crypto is becoming more popular than ever. We will address some of the significant issues described in this article. And the overall crypto market guys have been a little bit shaky. 

Lately, the crypto market has been going up and down at the time of the recording, bitcoin is going down again six percent at about 39040, ethereum is down 2686, and Binance coin ( BNB ) is 378. 

It seems like this war conflict will be going on for a while because, as you guys know, Putin and the French president had a long one-hour discussion, and it seems like Putin is not giving away, and he’s going to make this a long-term conflict. 

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So can crypto be used to avoid sanctions during Russia & Ukraine

That is an excellent question because, as you guys know right now, many Russian banks are sanctioned, and portions of the swift system are also sanctioned. So this has led to a debate on whether cryptocurrencies, especially bitcoin, can evade the restrictions because cryptocurrency is decentralized. There’s no way to enforce cryptocurrency restrictions.

It seems like one of the big things that they’re planning to do is that cryptocurrency exchanges will be on high alert to enforce the sanctions, and it goes on to say that every u.s business has to follow the law. So be up to like us entities like Binance, coinbase, and whichever cryptocurrency exchange out of the u.s or any countries that have those sanctions it’ll be up to them to enforce it.

And they’ll be doing this with global watch lists and blocking transactions from different IP addresses from Russia & Ukraine. So it is saying that it will definitely try to enforce it, but there is no guarantee because, as you guys know, people can use VPNs and different things like that.

And then the second issue, guys, is if bitcoin isn’t the digital goal, and I love bitcoin. As you see right now, if you guys had bought into bitcoin like before the pandemic started, you would know that you’re doing pretty well. Bitcoin has a market capitalization of 748 million, along with ethereum. It’s like the biggest or has the most market share globally. So I think it’s definitely a digital goal. It’s going to be around for a long time. So it’s hard to put sanctions around bitcoin.

Just because it has to be enforced, kind of like at the cryptocurrency exchange level, because cryptocurrency costs will be stored like in a wallet or metamask, and there’s no way to implement things like that.

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Russia &Amp; Ukraine
Russia & Ukraine

 And then the third major issue that this article talks about is that blockchain technology is proven, and just recently, guys, for the war efforts, Ukraine is now accepting dogecoin and other cryptocurrencies for donation. They have managed to raise 35 million dollars already!

So as you see, cryptocurrency is making a significant impact, and I think as long as you’re dealing with cryptocurrencies like in the top 10 or the top 20, as you see right here, bitcoin, ethereum, TESLA, BNB, & XRP things like that. All of these cryptocurrency guys, they’re proven!

 okay, there’s like no loopholes, there are no scams, there are no things like that, but some of the other cryptocurrencies, such as smart contracts or meme tokens that people start with smart contracts are very dangerous just because the person that creates the smart contract owns all the tokens but as long as they’re trading with the top 10 or top 20 cryptocurrencies such as dogecoin and so forth I think it’s going to be okay

 I think this is an exciting time to be in crypto; even though the crypto market is not doing too well recently just because of the war efforts and the overall stock market is down, the Crypto market is here to stay going to be a way for people to use as a different way to stash their income stash their assets.

So if you guys enjoy this crypto news update regarding the Russian & Ukraine conflict. With all our informative articles are just for entertainment purposes, I’m not a financial advisor. It’s not financial advice. Please make sure you do research, so thank you guys for reading and having me your time!

Do check out more articles on cryptocurrencysimple.com.

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How to buy Bitgert BRC-20 ( $BRISE ) Token in the current market in 2022

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How To Buy Bitgert Brc-20 ( $Brise ) Token In The Current Market In 2022

Obtaining some coins is more complex than others. One of them is Bitgert. Unfortunately, Coinbase, Binance, and other popular centralized exchanges don’t have it. But don’t worry; we’ve included some pointers to assist you in locating a Bitgert purchase option that works for you.

So, hello, forks. This is me, Pushkar, and today I will let you know how you can easily Buy Bitgert BRC-20 Token easily through the centralized or decentralized exchange at your ease. So, let’s get dive into it!

Buy Bitgert Brc-20
How to Buy Bitgert BRC-20

Steps on How to Buy Bitgert BRC-20 Token easily in Market

1) Check CoinMarketCap to see where and with which currencies you can buy Bitgert.

CoinMarketCap gives a list of where you can buy each cryptocurrency (also known as market pairs). For example, it is possible to find Bitgert on CoinMarketCap if you search for it. The “Market” button is near the price chart. 

This view shows you all the places where you can buy Bitgert, as well as the currencies you can use to buy it. This is where you’ll see the Bitgert abbreviation BRISE and the name of the other currency. Two currencies can be used to buy Bitgert. The second one can be used to Buy Bitgert BRC-20.

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If you want to buy BRISE in US dollars, look for the symbol BRISE/USD on the market.

2) Choose a way to buy things.

Platforms aren’t all the same regarding security, reliability, and liquidity. So before you open an account for Buy Bitgert BRC-20, do your study.

3) In step three, you can buy something on the platform of your choice.

There are different ways to do things on each platform. Some platforms are straightforward, while others are not easy to use.

It’s easier to buy crypto with a fiat currency, like the US dollar, than to buy it with another cryptocurrency.

Exchange with where you can buy Bitgert BRC-20 Coin at your ease! Just click to your favourite exchange and you will go to the Sign up page! Easy? Yes that’s what simplicity Cryptocurrencysimple get you!

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  • Gate.io
  • PancakeSwap (V2)
  • MEXC
  • BitMart
  • XT.COM
  • IndoEx
  • BitForex
  • Hotbit

The first step is to build a Bitgert-compatible crypto wallet. Then you’ll need to buy the first cryptocurrency and use it to buy Bitgert on the platform of your choice.

Most platforms have help guides if you get stuck on them. Many people love crypto and have written guides on YouTube, Twitter, and other social media sites if they don’t.

More about what’s happening with Bitgert BRC-20 Token

Bitgert’s price has dropped 0.13 percent in the last seven days. During the previous 24 hours, the price rose by 10.70 percent. The price has increased by 0.65% in the previous hour. The current BRISE price is 0.000058. The new price is 0.000058, which is a new all-time high.

BRISE Swap

BRISE Swap is a decentralized exchange based on the Binance Smart Chain, a faster and more affordable alternative to Pancakeswap.

BRISE Token Roadmap

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Buy Bitgert Brc-20
Source: https://bitgert.com/

A Staking Program for BRISE Revenue Sharing

BRISE staking is a scheme designed to share revenue with our investors and Auto-BNB payouts in BUSD with additional APY 80 percent returns.

Wallet for BRISE dApps

BRISE dApp Wallet is a multi-coin wallet that allows you to send securely, receive, store, and swap various cryptocurrencies. In addition, the application offers you a secure access key that prevents unauthorized access to your assets. BRISE dApp Wallet will be available for download on iOS and Android mobile devices, with multi-coin compatibility allowing you to buy and sell hundreds of coins and blockchain kinds.

Tweet from the BRISE official dev team

I hope you find this article helpful while you buy Bitgert BRC-20 Token. Rest is all you need to do is have a good investment mindset. I will also write a detailed article on tips or points to make your investment plan. I am all done for now. Allow me to leave and check out more on Buy Bitgert BRC-20 Coin on cryptocurrencysimple.com

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Bitgert BRC-20 could take over as the leading blockchain in terms of gas fees in 2022.

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Bitgert Brc-20

This is how it works: The Bitgert team built and launched its own blockchain, which is called Bitgert BRC-20.

In the beginning, the Bitgert project was a DeFi protocol that was built on top of the Binance smart chain. It took the Bitgert team six months to develop and launch their own blockchain, but that didn’t stop them. The BRISE BRC20 blockchain is the most talked about topic in the crypto world because it is so disruptive. This is why Bitgert BRC-20 is going up in value when all the other top cryptocurrencies like Bitcoin and Shiba Inu go down. Then, read on:

Bitgert BRC-20

Bitgert Brc-20
Bitgert BRC-20

One of the essential things Bitgert did to become a company. Finally, the Bitgert BRC-20 team worked on it. It was one of the last things they worked on. When the market didn’t expect it, the BRISE BRC20 blockchain just came out, which was a surprise. The zero gas fee feature and the fastest speed have been the most exciting things for people in the crypto world to learn about. In addition, the Bitgert BRC-20 chain can run smart contracts, and it can run on the EVM. If you’re a developer, Bitgert will be one of the best tools you have. These are why Bitgert is going up so much in the bear market.

Centcex

Bitgert Brc-20 Could Take Over As The Leading Blockchain In Terms Of Gas Fees In 2022.

This means that the Centcex price hasn’t changed very much. This means that it can be called “stable.” But Centcex is one of the cryptocurrencies that Bitgert has already dominated. The team has been working on making as many products as possible. Already, the new Centcex exchange is in the final stages of development. That’s not all. The Centcex team still has a long way to go before beating Bitgert’s performance, like developing a blockchain. I think that’s how it can compete with other things in the crypto market: by making money.

Bitcoin

Bitgert Brc-20 Could Take Over As The Leading Blockchain In Terms Of Gas Fees In 2022.

Coins that have had their value fall the most: Bitcoin is the best of them all. There’s no doubt that Bitcoin is one of the cryptocurrencies that isn’t doing very well in the market. It’s down more than 5%. However, it is one of the most potent cryptocurrencies on the market right now. Even so, Bitgert BRC-20 has a faster chain and a lower gas fee that might put bitcoin in a tough spot soon. Before now, Bitcoin has been one of the slowest blockchains in the crypto world, but now it is getting faster.

The Shiba Inu

Bitgert Brc-20 Could Take Over As The Leading Blockchain In Terms Of Gas Fees In 2022.

The Shiba Inu price has been going down as the crypto market has been in a bear run since the middle of this week. Because Shiba might have been one of the cryptocurrencies that made significant gains in the last bull run, it might do the same in the next bull run. It might be that the Shiba Inu team needs to do more work on the products if they want Bitgert to do well, even in a lousy market. Building a blockchain for the network, as the Bitgert team did, might be a good idea.

Dogecoin

Bitgert Brc-20 Could Take Over As The Leading Blockchain In Terms Of Gas Fees In 2022.

Elon Musk’s Dogecoin price has been going down a lot in the last few days. Though the coin has been doing very well, it hasn’t been able to keep its price stable. Dogecoin was one of the top cryptocurrencies that saw a significant price drop. They have a lot of work to do to keep the cryptocurrency overtaken by new coins like Bitgert. To do this, we need to make more products for both the network and the Dogecoin blockchains.

Ethereum

Bitgert Brc-20

The Ethereum coin hasn’t done very well in the last few days. At this writing, the cryptocurrency was still in the red. The second-largest cryptocurrency in the market is called Ethereum. It is also the second most helpful cryptocurrency in the market. However, the chain hasn’t been able to keep up with the demand for the coin. Bitgert BRC-20 and other cryptocurrencies are now a force to be reckoned with because they have a faster and cheaper gas than Ethereum. So Ethereum has a rival that it needs to beat.

The Binance Coin can be bought and sold on this site.

Bitgert Brc-20

BNB, which stands for Binance, hasn’t done very well in the market, but it hasn’t dropped as much as Bitcoin. So I think it can be said to be one of the cryptocurrencies that kept its prices stable. But BNB is one of the cryptocurrencies with a lot of room to grow, just like Bitgert BRC-20. However, Bitgert BRC-20 has a meager gas fee faster than the Binance chain. So when Bitgert goes green and goes up, Binance goes down and goes into the red.

That is all from my side for today, For more information, do check out other articles on cryptocurrencysimple.com, I Pushkar, singing out and I will see you in a bit.

Frequently Asked Questions:

1) What is Bitgert Crypto and how does it work?

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The Bitgert team has created a ground-breaking blockchain that has shaken even the most powerful chains in the market. The gasless chain is the most important characteristic that has allowed Bitgert BRC20 blockchain to outperform nearly all of its competitors. Because the gas charge is $0.0000000000001, this blockchain has no gas fee.

2) Is it wise to invest in Brise?

In the year 2022, the token will reach a high value, providing you with the greatest degree of profit. Yes, if you’re wondering, we’d like to inform you that this token has the potential to provide you with a fantastic profit. You will adore this token and will undoubtedly invest in it.

3) What is the best way to receive Bitrise coin?

Bitrise Coin is now available on Bitmart, Gate.io, Pancakeswap, and Hotbit exchanges.

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