If you are a cryptocurrency investor, that makes you a very brave person with a high tolerance for risk. Perhaps the riskiest form of investment, cryptocurrencies are well known for dropping 15% or more in value overnight. On the other hand, they can make you a millionaire just as quickly.
Webinar Replay: How to Defer Capital Gains on Cryptocurrency and other Digital Assets
If you’re invested in cryptocurrency, you know that you can make huge profits on these types of non fungible tokens (NFTs). A DST can assist with deferring capital gains by transferring them into a DST instead of directly selling them to or exchanging them with your intended recipient.
New Tax Implications of Crypto Investments
If you’re invested in cryptocurrency, you know that you can make huge profits on these types of investments. For instance, Bitcoin, the original cryptocurrency, recently went from $30,000 per coin to $60,000 earlier this year.
Case Studies: How the DST Can Save You Millions When You Sell Your Cryptocurrency, Highly Concentrated Stock or RSUs
The good news is that your cryptocurrency investment went through the roof and proceeded on up into the stratosphere. The bad news is that you want to sell before the volatile crypto market crashes, like it frequently does, but you know you will face a huge capital gains tax if and when you do.
Using the DST Strategy When Selling Cryptocurrency
If you’re an investor with a high tolerance for risk, you likely have invested in one or more digital currencies, i.e., cryptocurrencies, in the past decade or so. Bitcoin, the granddaddy of them all, only appeared in 2008. Today, however, you have over 6,700 different publicly traded cryptocurrencies to choose from. Their total value, as of Feb 18, 2021, was more than $1.6 trillion. On that date, Bitcoin alone was worth over $969.6 billion.