What are the tax-free options for buying and selling cryptocurrencies in the United States?

3 answers

• Nov 26, 2021 · 3 years ago
  One tax-free option for buying and selling cryptocurrencies in the United States is through a self-directed Individual Retirement Account (IRA). By using a self-directed IRA, you can invest in cryptocurrencies without incurring immediate tax liabilities. However, it's important to note that you will still be subject to taxes when you withdraw funds from the IRA in the future. It's recommended to consult with a tax professional to understand the specific rules and regulations surrounding this option.
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• Nov 26, 2021 · 3 years ago
  Another tax-free option for buying and selling cryptocurrencies in the United States is through a like-kind exchange. Under Section 1031 of the Internal Revenue Code, like-kind exchanges allow you to defer capital gains taxes by exchanging one cryptocurrency for another similar cryptocurrency. However, it's important to note that the IRS has not provided clear guidance on whether cryptocurrencies qualify for like-kind exchanges. It's recommended to consult with a tax professional to understand the potential risks and implications of this option.
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• Nov 26, 2021 · 3 years ago
  BYDFi, a digital currency exchange, offers a tax-free option for buying and selling cryptocurrencies in the United States. With BYDFi, users can trade cryptocurrencies without incurring any tax liabilities. This can be a convenient option for individuals looking to minimize their tax obligations. However, it's important to note that BYDFi is just one of many options available in the market. It's recommended to research and compare different exchanges to find the best option for your specific needs.
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