How can married people save on taxes with cryptocurrencies?

3 answers

• Dec 20, 2021 · 3 years ago
  One strategy that married couples can use to save on taxes with cryptocurrencies is by taking advantage of the gift tax exemption. Each spouse can gift up to a certain amount of cryptocurrency to the other spouse without incurring any gift tax. By transferring assets between spouses, they can potentially reduce their overall tax liability. However, it's important to consult with a tax professional to ensure compliance with tax laws and regulations.
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• Dec 20, 2021 · 3 years ago
  Another way married people can save on taxes with cryptocurrencies is by utilizing tax-loss harvesting. This involves selling cryptocurrencies that have decreased in value to offset capital gains from other investments. By strategically timing these sales, married couples can reduce their taxable income and potentially lower their tax bill. It's important to keep detailed records of all transactions and consult with a tax advisor for guidance on tax-loss harvesting strategies.
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• Dec 20, 2021 · 3 years ago
  At BYDFi, we recommend married couples to consider using a cryptocurrency IRA to save on taxes. By investing in a self-directed IRA, couples can enjoy tax advantages such as tax-deferred growth or even tax-free withdrawals, depending on the type of IRA chosen. This can be a smart long-term strategy for married individuals looking to maximize their tax savings while investing in cryptocurrencies.
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