This week, what we have been waiting for 846 days happened, namely Bitcoin broke through a new historical high above the level of $69,000, but the most surprising thing is that its price copies the cycle of 2021, due to which $BTC can grow by 200% after halving. Meanwhile in 7 days investors are expecting an important update for $ETH , against the background of which it might strive to break through $4000. And this effect will continue showing on other coins as well, for example :$SOL
With this incoming news, investors can start to keep their eyes peeled and fingers crossed cause not only this is the season for bull market but also the tax season in many jurisdictions.
To be clear we can't avoid paying taxes, but 🤫 Here are few ways that we at Kryptos have jotted down , so you can actually save up some portion of your gains:
Buy and HODL Crypto Assets 😤
As mentioned above buying crypto assets and holding them is not a taxable event in the US. An individual attracts tax liabilities only when he/she disposes of his/her assets and makes a capital gain as a result.
Utilize Tax Deductions 🤓
The IRS offers several exemptions that can significantly lower your tax bill, therefore it’s advisable to utilize your tax deductions like tax-free capital gain allowance, and the gifting allowance to reduce your taxable base.
Actively Track Your Losses and Harvest Them 📊
You can close some of your dud positions or even potentially good ones at a loss and use them as an anchor to bring down your net capital gains and hence save thousands of dollars in capital gains taxes. The wash-sale rule for tax-loss harvesting is only applicable for securities at the moment and therefore, you can sell your assets to create a fictitious loss and then buy the same assets right after.
Gift and Donate Crypto 🎁
Gifting and donating crypto are considered tax deductibles by the IRS and can be used to bring down your tax bill, however, make sure the total amount of crypto gifted should not exceed $17,000 and the donations made are towards a registered charity and isn’t directly or indirectly linked to you in any way.
Invest in IRAs and OZFs 💰
Invest in tax-advantaged investment funds to compound your returns and plan for the future. Alternatively, contribute to an Opportunity Zone Fund (OZF) to support public good initiatives while potentially benefiting financially.
You can always get to know more from our list of guides for lot of different countries.Access them all here : https://kryptos.io/guides
We are all ears to know your thoughts 👂🏻! Stay tuned for more tips and tricks.