You can defer your capital gains taxes if you sell your crypto holdings. Bitcoin is the best performing asset class of the decade with annualized returns in excess of 230%. This year alone, Ethereum (ETH) has surged 378%. Many other digital assets have experienced similar or even greater gains. If you desire to sell, transfer, or convert your crypto, you will be required to pay capital gains tax and you could lose 20% to 35% to the IRS. For example, if you desire to convert your BTC to ETH and have capital gains of $1 million, you could owe $200,000 to $350,000 to the IRS in one lump sum payment!
Why Use A Deferred Sales Trust?
What if you could defer the capital gains tax over 10 years or 20 years, and reinvest the proceeds in diversified assets such as real estate, marketable securities, or private equity? Now you can. With our Deferred Sales Trust, you can defer capital gains taxes using the installment sales contract allowed under Section 453 of the Internal Revenue Code. For more than 90 years, an installment sale contract and deferral of capital gains tax have been allowed for all types of property sales, including business sales, stock, real estate, artwork and collectibles.
There are many benefits of the Deferred Sales Trust.
Deferred Taxes
Your crypto is sold at a profit, and you only pay taxes on the amount of annual proceeds paid to you over a term of 10 or 20 years.
Avoid Probate
The sales proceeds are held in trust, which avoids probate.
Liquidity
Your crypto is sold with payouts to you in monthly or annual installments.
Diversification
You can now convert your appreciated crypto into diversified investments such as real estate, bonds, marketable securities, or private equity.
Here at Crypto Asset Protection, we guide you through the entire process. We prepare the legal documents for the Deferred Sales Trust and the sales agreements. We also have relationships with the best-in-class trustees that will manage the sales proceeds under the deferred payout schedule, and provide you with all required reporting and forms for accounting and taxes.