Avoid Taxable Gains on Cryptocurrency

6 Ways to Avoid Capital Gains Tax on Your Bitcoin Transactions

How to Legally Avoid Taxable Gains on Cryptocurrency

https://medium.com/altcoin-magazine/6-ways-to-avoid-capital-gains-tax-on-your-bitcoin-transactions-cdea03e17eb4

In 2018, its possible for individuals to gift up to $15,000 without documenting the transaction.

If the amount is above $15,000 then a gift tax return would need to be filled (the annual gifting exclusion limit is $15,000 per individual).

Did you know that US citizens can gift up to $11.2 million per lifetime?

One last point on Gifting — when the recipient cashes out (sells the crypto), the taxable value of the gift is determined by the market value on the day the gifting took place.

Aug 28, 2018
https://medium.com/altcoin-magazine/6-ways-to-avoid-capital-gains-tax-on-your-bitcoin-transactions-cdea03e17eb4

It’s been a bumper year for Bitcoin from a peak price of over $19,000 to a subsequent low of less than $6,000 dollars.
Warning check to see if this  information is up to date in 2022 where you live!

Remember Bitcoin is a commodity – everything else is a cryptocurrency.
In 2014, the Internal Revenue Service (IRS) issued guidance for US taxpayers regarding the treatment of cryptocurrency — Cryptocurrencies are to be treated as a capital asset. This capital gains rules apply for any gain or loss, creating a taxable event for potentially every cryptocurrency transaction.

The IRS served a “John Doe” summons (the worst kind) to Coinbase for it’s customer list of investors who have transaction worth more than $20,000 back in 2015.

 

One thought on “Avoid Taxable Gains on Cryptocurrency”

  1. The annual exclusion for gifts increases to $16,000 for calendar year 2022, up from $15,000 for calendar year 2021.

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