Bienvenidos mis ositos, tu siempre eres mis queridos! (Welcome back little bears you are always my dears!)
The reason for this video came about after I started preparing for my 2021 tax filing. As you can imagine it’s a chore and a headache. Even with software it’s a nightmare to work through.
If you live in a tax unfriendly jurisdiction Federal, State, AND Muncipality taxes can eat up 50%+ off your income!
For those with a relatively low cost basis you need to find ways to unlock your liquidity without triggering a massive tax bill. For example if you were lucky to get into Ethereum at $100 you may have inadvertently swapped it for another altcoin for speculation or for yield farming.
Now that Ethereum is around $3,000 you may have a $2,900 profit to report if you swapped it for another coin.
In hindsight I wish I had used my digital assets as collateral to take out stablecoin loans.
In this video I go over some options where you can borrow against your crypto.
https://www.coinbase.com/borrow
https://app.anchorprotocol.com/mypage
Obviously none of this is formal financial or tax advice. You need to find qualified professionals in your jurisdiction.
Be sharp, stay hungry let’s get that money!
