Ben Simpson explains a personal tax strategy for investing in cryptocurrency by purchasing and holding crypto on his company's balance sheet. He argues this uses pre-tax dollars to gain greater exposure (avoiding paying income/dividend tax before investing), defers tax until funds are taken personally, and states this approach has saved him significant money.
One of the tax strategies I utilize when I'm buying crypto is actually to invest on my company's balance sheet. By allowing my company to invest and accumulate crypto on my balance sheet, I'm using pre tax dollars to invest, which allows me to get higher amount of exposure to that asset class before having to sell it. At the time I pay tax. When you have to take a personal income, or you have to take a dividend from your business or your salary, you're already paying tax before you receive that capital. Meaning you're only being able to invest with that 60%, 70%, sometimes 50% of the capital that you actually had allocated. Meaning you're paying the government first and then feeding yourself. I like to feed myself and then pay the government later. That is a tax strategy that saved me a lot of money.
