LM is a self-custodial, asset-management platform ā akin to a digital bank
Users can store, manage and protect their digital assets, all in one place.
However Locked Moneyās Unique Selling Point is something that nobody has done before ā and this is extremely exciting for Crypto and for the entire Crypto Community.Ā And that is that Users of the Professional Plan of Locked Money will not have to pay Capital Gains Tax on their profits.
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We can shield our users from Capital Gains Tax liabilities due to our structure.Ā
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HOW DOES THIS WORK?
Locked Money (LM) introduces itself not just as another digital wallet or a place to manage crypto assets, but as a comprehensive asset management platform, effectively functioning like a digital bank for your cryptocurrencies. Here's what sets LM apart, particularly with its Professional Plan:
ā¢Ā Self-Custody with a Twist: At LM, users have complete control over their digital assets through self-custodial vaults. These vaults, which have passed audits for security, allow you to store, manage, and even transact with your assets.
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ā¢Ā Tax Efficiency: The game-changer lies in LM's integration of a legal framework known as a Series LLC (Limited Liability Company). For users opting for the Professional Plan, this isn't just about storage or transactions but about tax management.
How It Works:
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ā¦Ā Legal Entity: By linking your vault to a Series LLC, your assets technically belong to this corporate entity rather than you personally. This shift in legal ownership will distance you from Capital Gains tax liabilities on these assets.
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ā¦Ā No Capital Gains Tax: The structure of the Series LLC, means that the gains from trading or holding crypto within your vault aren't subject to Capital Gains Tax (CGT). This is because the entity, not the individual, holds the assets.
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ā¦Ā Non-Reporting: There's no obligation to report your crypto holdings annually, simplifying your tax obligations significantly.
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ā¦Ā Withdrawal and Personal Tax: When you withdraw funds from your vault to your personal account, that's when personal income tax applies. This is unavoidable but planned for within LM's framework.
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Why This Matters:
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Historically, such legal structures were the preserve of high-net-worth individuals, out of reach for the average crypto enthusiast. LM democratizes access to these tax optimization strategies, thanks to blockchain technology.
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The Blockchain Advantage:
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Ā ā¢Ā Self-Custody Remains: Despite the assets being under a corporate veil for tax purposes, users maintain control over their assets through blockchain's inherent properties, ensuring you can access your funds anytime.
ā¢Ā Tax Optimization, Not Evasion: LM emphasizes compliance. It's about smartly optimizing your tax situation within the law, not avoiding taxes altogether.
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In Summary:
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LM is an Asset Management Platform - but our unique selling point which nobody has yet done in the Crypto World is we are applying a Legal Infrastructure the Blockchain which means that users of Locked Money will not have to pay Capital Gains tax.
Locked Money isn't just offering a place to park your crypto; it's pioneering a model where legal and tax benefits are woven into the fabric of asset management.
By leveraging Series LLCs, LM aims to make what was once a luxury for the wealthy accessible to all, promising a world where your crypto investments work harder for you, legally and efficiently.
