6 Ways to Avoid Capital Gains Tax on Your Bitcoin Transactions

How to Legally Avoid Taxable Gains on Cryptocurrency

By Richard Knight on ALTCOIN MAGAZINE

It’s been a bumper year for Bitcoin from a peak price of over $19,000 to a subsequent low of less than $6,000 dollars. With many investors looking to cash out, there is growing concerns about tax liabilities from their trading activities.

In 2014, the Internal Revenue Service (IRS) issued guidance for US taxpayers regarding the treatment of cryptocurrency — Cryptocurrencies are to be treated as a capital asset. This capital gains rules apply for any gain or loss, creating a taxable event for potentially every cryptocurrency transaction.

What are Taxable Events?

It’s likely that all cryptocurrency transactions will be treated as a taxable event; some being treated as income and others being treated as a capital gain or loss.

This can include:

• Trading Cryptocurrency: Buying and selling cryptocurrency can generate a capital gain or loss. Fortunately, losses…