BURBANK, Calif, March 1, 2023 /PRNewswire/ -- BitIRA – pioneer of the first insured cold storage solution for cryptocurrency retirement accounts – published its fifth annual Crypto Tax Q&A this week. This collaboration brings together the most frequently-asked tax questions from crypto investors and provides answers from the nation's top cryptocurrency tax experts.
Jeremy Warner, Head of Sales at BitIRA, said, "We're doing our best to prevent those tax season headaches that affect so many people this time of year."
In many ways, the IRS hasn't exactly kept pace with the rapid developments in cryptocurrencies and blockchain adoption. A majority of those who own cryptocurrencies face a great deal of uncertainty when tax time rolls around.
Warner explained, "While we don't provide tax advice — BitIRA's customers rarely have tax questions regarding their Bitcoin IRAs — this is an opportunity to serve the greater crypto community."
Specific topics covered in the crypto tax FAQ include:
- Determining whether a specific transaction is a taxable event
- Inactivity and reporting requirements for "buy and hold" savers
- Tax liabilities on staked assets, airdrops and yield farming
Among other tax related content, BitIRA also has an extensive page on crypto taxes, a directory of CPA advisors from around the country who are knowledgeable of crypto taxes, and an exclusive guide on crypto taxes.
But there are simpler methods to gain exposure to cryptocurrencies without tax-related headaches…
Cryptocurrency IRA Options: "Can I have my own bitcoin IRA?"
For exposure to crypto growth potential without all the paperwork, BitIRA offers bitcoin IRA and other cryptocurrency retirement accounts for most types of tax-sheltered retirement accounts, including Traditional and Roth IRAs, 401(k), 403(b), Thrift Savings Plans, and 457 plans.
According to IRS Notice 2014-21, digital currencies are treated as personal property for taxation purposes. Thus they're Self-Directed IRA eligible assets. Rolling over existing, eligible retirement accounts into an SDIRA allows retirement savers to allocate a portion of their savings into digital currencies with zero penalty. Retirement savings are tax-deferred, and both asset appreciation and trading profits are tax-free until taken as a distribution.
"A lot of tax questions vanish with a cryptocurrency IRA," Warner mused.
About BitIRA:
Based in Burbank, California, BitIRA is a leading specialist in the setup and management of cryptocurrency holdings in self-directed IRAs. For more information about BitIRA or to sign up for a digital currency IRA, visit https://www.bitira.com.
SOURCE BitIRA
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