CEO CHAT: Todd Southwick, iTrustCapital

Who is thinking about taxes at a time like this?

Despite the COVID-19 pandemic, investors are in the middle of a revised tax season. As such, those who invest in cryptocurrencies could face complicated tax returns that limit their gains. Throughout the year, these investors must keep painstakingly detailed records of every taxable event with cryptocurrency, including:

  • Trading crypto to USD
  • Trading crypto to crypto
  • Paying for goods or services with crypto
Todd Southwick, iTrustCapital

Then, when tax time arrives on July 15th, they need to report any gains over the course of less than a year to the IRS as short-term gains since cryptocurrency is considered “property for tax purposes.” That could mean the IRS might be able to take up to 37% of cryptocurrency investor gains depending on income. With all the effort that goes into documenting crypto trades and the IRS eager to regulate and enforce this relatively new market, it comes as no surprise that some innovative companies in the industry have developed methods to safely and legally trade crypto assets with very little tax obligations and sometimes no taxes whatsoever.

So, how can you trade cryptocurrency carefree without the burden of tax liabilities and still conduct such transactions in a legal way?

That is where companies like iTrustCapital enter the picture.

iTrustCapital is an alternative investment IRA company led by experts from reputable organizations in the traditional financial industry, such as PIMCO, that allows investors to directly buy and trade cryptocurrencies and physical gold in real-time—all through retirement accounts, often without any tax obligations or minimal tax obligations, depending on the account selected. In an interview, Traders Magazine Editor John D’Antona Jr. interviewed Todd Southwick, CEO of iTrustCapital on how to minimize tax obligations with cryptocurrency trading,

TRADERS MAGAZINE: Why should investors trade cryptocurrencies through IRAs?

Todd Southwick: The real question is, why not trade crypto through IRAs? The ability to trade crypto through IRA accounts conserves two of the most important assets in life—time and money. The tax benefits of IRA accounts will enable crypto investors to save money on their investments, plus, for their tax returns, there will not be a need for intensive, time-consuming recording and reporting.

TM: What brought the cryptocurrency trading market to where it is today?

Southwick: When cryptocurrency and crypto trading first surged onto the scene, there was a lot to be gained in a very short period of time. Consequently, after that initial boon to this new industry, there was also a lot to be lost, especially when tax time came around. Some crypto investors could see a lot of their gains wiped out over the course of a year. The volatility of this cutting-edge market and the initially unregulated activities within the industry sparked concerns from the IRS, leading to a new focus on crypto trading.

TM: What are the major problems faced by most crypto investors?

Southwick: When crypto first started, there was very little regulation, which enabled plenty of bad actors to take advantage of investors with exorbitant costs, false promises, and fraud. Now as the IRS seeks stricter regulations and enforcement regarding this fast-paced market to curb unethical and illegal behavior, crypto investors have been faced with increased tax liabilities and a complicated record-keeping process in case the IRS calls any crypto activities into question.

TM: What’s the solution to the problems faced by the average crypto investor?

Southwick: To save time and money, crypto investors should give strong consideration to trading their crypto assets through IRAs. And in order to ensure the security and legality of these activities, they should enlist the help of a trustworthy alternative IRA trading company.

TM: What are the benefits of choosing the right alternative IRA trading company?

Southwick: iTrustCapital and other similar companies seek to solve the problems associated with cryptocurrency trading that have developed over the years by simplifying the process. Through the empowerment of investors to trade crypto within IRAs, these companies save investors money by eliminating or deferring their tax obligations with cryptocurrency transactions, and they also save these investors from the frustration of spending too much time documenting every single action and fee with every single crypto trade. In addition, iTrustCapital offers highly secure SOC-2 certified crypto asset storage. And, most importantly, this is all completely legal.

TM: What do you envision for the future of cryptocurrency trading and IRAs?

Southwick: Currently, there are approximately $150 billion of capital in Self-Directed IRA accounts. Unfortunately, this system is often challenging to navigate, expensive, and risky. But with the streamlining and support of alternative IRA companies as well as the development of more new technology, these Self-Directed IRAs have the potential to transform the investment industry and create growth that could lead to trillions of dollars in assets held by these IRAs. This means more investment opportunities for more people, more choice in the types of investments, and more gains from investments. In other words, it is an exciting time to be a crypto investor!


Source link

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img

You might also like...