Forbes has published an article, “What Crypto Investors Need To Know About Charitable Tax Planning”, which discusses tax planning strategies for crypto investors. The article begins as follows:
Ah, December. It always feels like this month sneaks up on us. For many, it is the last chance to impact their tax planning. But in the year end rush, there is a lot to consider.
The past 18 months have been a wild ride in the capital markets. From the lows of March 2020 to the highs of the recent months, investors have done incredibly well. Further investors who fearlessly entered the crypto market a few years back might find themselves with significant gains.
And that is where taxes can become tricky.
“Think of cryptocurrency like a stock. Sell it in less than a year at a gain, and it is ordinary income. More than a year, and it’s taxed at long-term capital gains rates,” explains Adam Markowitz, EA and Vice President, Howard L Markowitz PA, CPA.
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal