US Capital Gains Taxes

Hey Everyone,

Does anyone have any suggestions on how to minimize taxes for any gains for crypto. I know in the US selling crypto results is subject to capital gains tax. I don’t intend on being a day trader, but if any of coins surge in price I would like to cash out without getting killed in taxes.

I personally don’t own a business so I get taxed as an individual. I did read about digital IRA’s such as BitIRA.

Any advice would be greatly appreciated!

-Steve

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Best thing to do is talk to a tax professional unfortunately. In general, long term capital gains (holding an investment for more than a year) has lower taxes than short term capital gains (holding for less than a year).

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Don’t forget to report losses! I got tired of EOS not living up to its original billing (plus the drama of the community), so I sold for a loss this year. I will claim the loss on my 2020 taxes, and it will help to lower total crypto-related tax burden if I sell anything this year (which I doubt… I think the next boom will carry into 2021).

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Open an account in your Roth IRA and trade tax free.

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Thanks Ian! Appreciate the feedback. Yeah I did a couple free calls with some us tax advisors and they all mentioned IRA’s for someone like myself who is currently a W2 employee.

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@bkcrypto thanks! Yes, that is what I am looking into now. 3 companies I’ve found are ITrustCapital, RetirewithChoice, and BitIRA. Do you have a Roth IRA?

Yes, I’ve had one for a long time. I hired an IRA attorney named Mat Sorensen and he set up some IRA LLC’s for me that have worked great. If you are interviewing companies, I’d suggest talking to Mat. He is one of, if not THE premier IRA attorneys in the U.S., and he also owns a custodian company called Directed IRA and written a best selling book on the subject. He’s familiar with crypto and how to deal with it. .

I am not allowed to send links in this forum, but you can Google KKOS Lawyers, DirectedIRA and go to Amazon and search for Mat’s book

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@bkcrypto Thanks for the information! I’ll look into Mat Sorensen and Directed IRA. Appreciate your help!

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