There’s an old saying – “It’s not what you make, it’s what you keep.” Traders love the opportunities the crypto market provides, mainly due to its volatility. What traders don’t love, or anyone else for that matter, is paying taxes on their gains. Not to mention the complexities of tracking all one’s trades. Everyone knows we have to pay taxes, but to have to pay the IRS short-term capital gains on all trades not held for a year is steep. The IRS taxes these type of gains as regular income, so depending on what tax bracket and state you live in, that could be upwards of 50%. What that does, other than the feeling of being gut punched, is it drastically reduces your available funds to trade and build more wealth. Every year you have to fork over a large chunk of your money and work on rebuilding it just to give more away next year. Makes me think of a hamster wheel and yes, you are the hamster.
How to avoid this atrocity, you ask? Simple, make your trades inside of an IRA. By trading inside of an IRA, you do not pay taxes on your trades and your account can grow for years without having to pay said taxes. In a Traditional IRA, all contributions and gains are tax-deferred until you pull funds out of the account. In the case of a Roth IRA, the account is funded with post-tax dollars, but from there you will NEVER pay taxes on your gains. Yes, you heard me right, Roth IRA gains are tax-free! It’s the unicorn of financial accounts.
Using an IRA as a wealth building vehicle is one of the smartest financial decisions you can make. The ability to defer or eliminate taxes on investment gains using IRAs is a tool the 1% have been utilizing for decades. Don’t you think it’s time you do too?
To learn more about Tax-Free Crypto Trading go to get.itrustcapital.com. Make sure to enter your email to get on the list for updates and be entered to win a free Ledger Nano S.