6th Annual Crypto Tax Q&A Published by BitIRA

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Mar 05, 2024, 06:00 ET

BURBANK, Calif., March 5, 2024 /PRNewswire/ -- BitIRA – pioneer of the first insured cold storage solution for cryptocurrency retirement accounts – published its sixth annual Crypto Tax Q&A this week. Each year, BitIRA polls crypto investors for tax questions and provides answers from leading cryptocurrency tax experts.

Jeremy Warner, Head of Sales at BitIRA, said, "Crypto taxes are a headache. So we're doing our part to demystify this complex topic."

IRS guidelines and policies regarding cryptocurrencies and virtual assets aren't always straightforward. Which leaves many cryptocurrency owners with a great deal of uncertainty when filing their taxes.

Not everyone has crypto tax questions, though. Warner explained, "BitIRA's customers rarely have tax questions regarding their Bitcoin IRAs. We publish this Q&A for those who own crypto in taxable accounts, as a service to the community."

Specific topics covered in the crypto tax FAQ include:

Cost basis determination
The difference in reporting requirements between hot and cold wallets
Tax liabilities on assets tied up in bankruptcy procedures

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…

Bitcoin IRA: Own Crypto Without Tax Headaches

For exposure to crypto without all the paperwork, BitIRA offers a bitcoin IRA you can fund from virtually every type of retirement account: Traditional and Roth IRAs, 401(k), 403(b), Thrift Savings Plans and 457 plans.

How? According to IRS Notice 2014-21, digital currencies are treated as personal property for taxation purposes – which makes them eligible for a Self-Directed IRA. An SDIRA funded from existing, eligible IRA accounts allows retirement savers to diversify with digital currencies without tax penalties. These tax-deferred accounts mean that asset appreciation and trading profits are tax-free until taken as a distribution in retirement.

"If you're tired of crypto tax questions, I heartily recommend a crypto IRA," Warner said. "We can help."

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