As the bitcoin investors grow everyday in the U.S., newly written U.S. tax laws give hard time to those who wants to make profit from the cryptocurrency. The law implies that a lot of people will have to pay taxes on every single transaction they processed throughout the past twelve months.
So is there a way not to pay taxes for the cryptocurrency investors? Yes. However it involves gifting the funds to another person or charity.
Gifting Bitcoin is the only crypto-tax loophole
The U.S. government is behind the people who invested into cryptocurrencies. Also the 1031 tax-free exchanges won’t apply to digital currencies. So basically the only way to avoid paying taxes for cryptocurrency investors is to gift their money. San Francisco tax lawyer Robert Wood said: “If you give crypto to a friend or family member — to anyone really — ask how much it is worth. If the gift is worth more than $15,000, it requires you to file a gift tax return. For 2018, $15,000 is the amount of so-called “annual exclusion.” You can give gifts up to this amount each year to any number of people with no reporting required.