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Five ways to avoid capital gains taxes on crypto profits
Strategies to Minimize Capital Gains Taxes on Crypto Profits
I’m still a registered tax professional, retired and traveling the world slowly. I have more time to look for legal tax benefits that many people miss when filing their taxes.
My latest venture is to help crypto investors understand the taxation surrounding crypto profits. The IRS is causing havoc on crypto investors because somewhere down the line, they were misinformed and told, they didn’t need to file taxes on their cryptocurrency profits, because the IRS would never know.
Wrong.
The IRS in recent years begin suing crypto companies to gain access to U.S. taxpayers account information.
Many crypto investors are now in trouble with the IRS. The other reason is many taxpayers are not familiar with the reporting requirements.
Here are five ways to avoid and lower your capital gains taxes on cryptocurrency profits.
1) Holding Period: The holding period plays a crucial role in determining how much capital gains tax you will owe. By holding onto your cryptocurrency for more than a year before selling it, you can take advantage of lower long-term capital gains tax rates.
