Jul 29, 2022
Summary:
You’ve made money in crypto and managed to sell it for a profit;
however, there is still an important question to answer. What are
the strategies for minimizing tax burden with crypto, and can you
use the losses to offset other gains? Micah Fraim, a bestselling
author and CPA of an accounting firm, comes on the show to explain
how you can lower your crypto taxes by the legal means available.
Many people don’t understand this component when investing in
digital assets, and Micah’s mission is to help people successfully
manage these new age investments. Tune in for more insight.
Highlights:
-If you’ve made money in crypto and you managed to sell it for a
profit, you have to figure out strategies for minimizing tax burden
with crypto, or try and use the losses to offset other gains
-The average crypto investor has three main categories of income
(i.e. trading, capital gains, staking income)
-If you’re trading and holding for more than a year, you get the
same treatment as long term capital gains
-With crypto, you can sell your whole portfolio and buy it back,
but you realize the loss
-After 30 days you can buy a stock back but with crypto you don’t
have to worry about waiting
-The IRS has only issued guidance on five or six things in
crypto
-With the things that are ubiquitous, there is no guidance
-Your duty as a citizen is to minimize your taxable incomes through
whatever legal means are available
-It’s going to take multiple iterations of regulations to close the
loopholes/gray areas that exist right now
-Micah bought some crypto back in 2017. When the market recovered,
Micah got involved in a project with cryptocurrency, and realized
that no one understood the tax side of digital assets
Useful Links:
Financial Survival Network
Fraim, Cawley & Company, CPAs