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.
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!