ideas to minimize paying US capital gain taxes?

[vit]

Hi,

I'm a full-time crypto trader and I'm trying to find ways to minimize my US capital gains taxes (37%). I've read some suggestions from Reddit about setting up an offshore company to potentially help with this matter, but I'm not exactly sure how setting up an offshore company will help me. I don't want to evade paying taxes, but if there are legal loopholes within the tax law, I want to learn more about it. Paying 37% taxes is destroying my bank account bad.

 

[Yrybak08]

The only way to lower your tax liability is to offset your gains with prior year losses. An offshore company wouldn’t help. Pay Uncle Sam and move on. The U.S. treasury doesn’t even need to know or make any efforts to find out what you did in the event you want to evade taxes. The information goes to them. Wherever you go you’ll have to use your passport to open an account and that bank will report your balanace to fincen which then will show a mismatch with your Income. That same offshore bank might also ask for source of funds.

 

[vit]

The only way to lower your tax liability is to offset your gains with prior year losses. An offshore company wouldn’t help. Pay Uncle Sam and move on. The U.S. treasury doesn’t even need to know or make any efforts to find out what you did in the event you want to evade taxes. The information goes to them. Wherever you go you’ll have to use your passport to open an account and that bank will report your balanace to fincen which then will show a mismatch with your Income. That same offshore bank might also ask for source of funds.

Like I mentioned, I'm not trying to evade taxes (paid my taxes in the past 2 yrs), but if there are legal loopholes to reduce my tax gains, why not take advantage of it? I would be a fool to continue paying 37% taxes if other folks are utilizing some strategies to pay less taxes.

 

[Yrybak08]

Then hold assets for longer than 12 months and pay 20% . There’s no such thing as 37%. It’s either short term capital gains taxed at income bracket or long term taxed at 20%. There are no loopholes. Speaking of offshore options indicates intent / possibility of evasion. If you’re a U.S. person residing in the US making money in the U.S., no offshore option will help you. Sorry.

 

[baltic7]

Obtain citizenship in another country, preferably tax-free, and renounce US citizenship. But that's probably not what you want.

I understand that you want to continue living in the United States.

Maybe you can find lawyers in US specialized in crypto, so they can advice you properly in the best ways.