People are always complaining about crypto and taxes, and few seem to be aware of the great gift we’ve been given provided that our crypto moons after we’ve held it for more than one year.Did you know that if your income is low enough, long term gains are not taxed at all? That’s right, a long game term capital gains rate of 0%This effectively means that if you buy enough crypto and moons after a year, you can sell all or part of it tax free if you earn little enough in the year of sale (so quit that job in advance to be safe!)For joint returns you need the income to be below $74,900. For individual returns, $39,375. Double check those numbers before making any decisions.So, before you harvest those tax losses, remember, if you plan to repurchase, you restart that 1 year clock and if your crypto moons within the year, you won’t be able to take advantage of the 0% tax rate assuming you otherwise could do so.Also, income includes stock dividends so if your protocol is large you may need to adjust the stocks you own. All of this is kind of a fantasy, but how cool would it be to have mad gains that are tax free, so long as you retire and don’t earn too much!
Submitted November 01, 2019 at 03:35AM
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