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Tax evasion = illegal. But what about tax avoidance?
Plan B Passport will sell you a passport to your choice of 7 destinations — including tropical islands like St. Lucia or Grenada — but not for the weather.
It’s to escape capital gains taxes on crypto earnings
Plan B was founded by Russian expat (and ex-sailboat racer) Katie Ananina, 26, who told CNBC that she “was smart enough to figure out that $200 in bitcoin will be worth $100k at some point” and doesn’t think the government should get a big cut.
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Plan B works with each country’s residence or citizenship-by-investment program.
Typically, clients donate between $100k-$150k plus fees to obtain citizenship in a matter of months.
The US taxes crypto like property or stocks
Whatever you sell your bitcoin for — minus what you paid for it — is eligible for capital gains tax. The short-term (held for 1 year or less) rate is 10-37%, while the long-term is 0-20%.
Expats would still be on the hook for capital gains tax…
…if they kept their US citizenship, but not if they denounced it. Which is exactly what Ananina says some American clients are considering. Uncle Sam also charges an exit tax, but it could still be worth it for some.
Meanwhile, the IRS has been looking for unreported crypto under a name that sounds way more exciting than it is: Operation Hidden Treasure.