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☆ Here's how to leverage the 0% capital gains bracket as the price of bitcoin surges
▼ + stars: | 2024-11-18 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

But if you're in the 0% capital gains bracket, you can reduce future taxes with a lesser-known strategy, experts say. You can leverage the 0% long-term capital gains rate — meaning you won't owe taxes on gains — as long as earnings are below a certain threshold. The income limits for 0% capital gains may be higher than you expect, Gordon said. You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income. If you're in the 0% bracket, you can sell profitable crypto to harvest gains without triggering taxes.

Persons: Andrew Gordon, Gordon, Matt Metras Organizations: Gordon Law Group, MDM Financial Services Locations: Rochester , New York

☆ Here are 3 smart crypto tax moves to consider — whether prices go up or down
▼ + stars: | 2024-07-30 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Weigh 'tax gain harvesting'Despite recent dips, many long-time crypto investors could have significant gains. Long-term capital gains rates apply to assets owned for more than one year. Of course, you'll need to weigh the tax consequences of boosting your adjusted gross income with crypto gains, which can impact other tax breaks. Consider the crypto wash sale 'loophole'If you're sitting on crypto losses, you could consider tax-loss harvesting, which allows you to offset other investing profits. Although tax-loss harvesting often happens at year-end, it's better to harvest crypto losses over time because "those losses may no longer exist" by year-end, Gordon explained.

Persons: bitcoin, Andrew Gordon, Adam Markowitz, Gordon Organizations: Getty, Gordon Law Group, Luminary, IRS Locations: Windermere , Florida

☆ Bitcoin is up more than 50% this year — here are key crypto tax rules every investor should know
▼ + stars: | 2024-07-29 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

After holding crypto for more than one year, you'll qualify for long-term capital gains of 0%, 15% or 20%, depending on taxable income. Higher earners may also owe an extra 3.8% levy, known as net investment income tax. By comparison, short-term capital gains or regular income taxes apply to assets owned for one year or less. New crypto reporting rulesThe U.S. Department of the Treasury and IRS in June released final guidance for digital asset brokers, which phases in mandatory yearly reporting. With limited past reporting on basis, crypto investors can still establish a "reasonable allocation" before Jan. 1, 2025, according to an IRS revenue procedure released in June.

Persons: Donald Trump, Jon Cherry, Adam Markowitz, Andrew Gordon Organizations: Republican, Getty, IRS, Luminary, Internal Revenue Service, U.S . Department of, Treasury, Gordon Law Group Locations: Nashville , Tennessee, Windermere , Florida

☆ What investors need to know about crypto taxes amid the latest bitcoin rally
▼ + stars: | 2024-03-16 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Whether you're a longtime crypto investor or recently purchased digital assets, here are some key things to know from crypto tax experts. For 2023, there's a "digital assets" question on the front page of Form 1040, along with returns for estates and trusts, partnerships, corporations and S corporations. Andrew Gordon President of Gordon Law Group"Yes-or-no questions are quite powerful," said Andrew Gordon, tax attorney, certified public accountant and president of Gordon Law Group. However, the 2023 digital assets question does not apply to bitcoin futures ETFs or spot bitcoin ETFs, he said. How crypto tax reporting works

Persons: Cryptocurrency, Matt Metras, Andrew Gordon President, Andrew Gordon, Gordon, They're Organizations: IRS, MDM Financial, Gordon Law, Gordon Law Group

☆ Investors may miss out on this key tax loophole if they actively trade a spot bitcoin ETF
▼ + stars: | 2024-01-18 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

But there's a catch with conventional assets: the wash sale rule . Now, tax professionals are flagging a potential wrinkle that may arise: Even though bitcoin itself isn't subject to the wash sale rule, a spot bitcoin ETF very well may be. Property versus security Under federal tax law, the IRS deems cryptocurrency to be property . Managing limitations At its core, that means investors should avoid swapping in and out of the same spot bitcoin ETF within the 61-day limit if they had sold the position. This also raises the question of whether dumping one spot bitcoin ETF for another would be deemed substantially identical.

Persons: Stephen Turanchik, Paul Hastings, Andrew Gordon, Dan Herron, Richard LaFalce, Morgan Lewis, Turanchik Organizations: Internal, Digital, Tax, Force, American Institute of CPAs, IRS, Gordon Law Group, Elemental Wealth, Investors Locations: San Luis Obispo , California

☆ You could owe 0% capital gains tax for cryptocurrency in 2023. Here's what crypto investors need to know
▼ + stars: | 2023-11-17 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

STR | NurPhoto via Getty ImagesAs investors weigh year-end tax moves, there may be a lesser-known savings opportunity for certain cryptocurrency investors, experts say. After the crypto industry lost nearly $1.4 trillion in 2022, many investors leveraged tax loss harvesting, which uses losses to offset profits. But after a rally in 2023, you may consider strategically selling profitable crypto held in brokerage accounts, known as "tax gain harvesting." Investors "really ought to be paying attention" to tax-free opportunities to harvest crypto gains, according to Wheelwright. Still, the tax gain strategy allows you to sell at a gain and pay no tax, whereas "tax loss harvesting defers future tax," Gordon said.

Persons: Tom Wheelwright, Wheelwright, Andrew Gordon, Gordon, That's Organizations: Getty Images, Gordon Law Group, IRS

☆ Treasury proposes crypto reporting rule to 'close the tax gap.' What it means for investors
▼ + stars: | 2023-08-29 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

oatawa | GettyAs the U.S. Department of the Treasury and IRS roll out proposed regulations for crypto tax reporting, experts say it's critical for investors to accurately report and track activity. Stemming from the 2021 federal infrastructure bill, the agencies on Friday unveiled the long-awaited tax reporting proposal for cryptocurrency, non-fungible tokens and other digital assets. It's part of a broader effort to "close the tax gap" and address crypto tax evasion, according to the Treasury. Similar to other tax forms, the regulations would require brokers to begin sending Form 1099-DA to the IRS and investors in January 2026, to report crypto activity from 2025. "But a lot of individuals are looking at six to seven figures, potentially, of crypto activity that they've never reported," he said.

Persons: —, there's, Andrew Gordon, Alex Roytenberg, they've Organizations: Getty, U.S . Department of, Treasury, IRS, Gordon Law Group

☆ An Australian mayor may sue OpenAI after ChatGPT allegedly made false claims that he'd been jailed for bribery
▼ + stars: | 2023-04-07 | by ( Grace Dean | ) www.businessinsider.com time to read: +4 min

An Australian mayor may sue OpenAI after ChatGPT said he'd been jailed for a bribery scandal. Hood told Australia's ABC News he was "horrified" that ChatGPT had been saying he'd been convicted. Hood told ABC News it was all the more "disturbing" because ChatGPT got some details correct. ChatGPTChatGPT also described Hood as CEO of Note Printing Australia, when he was company secretary, per the Herald Sun. This small notice at the bottom of the chatbot's webpage is "nowhere near adequate," Hood told ABC News.

☆ Here's how to report 2022 crypto losses on your tax return
▼ + stars: | 2023-03-15 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

But if you're still recovering from last year's losses, it may be possible to score a tax break on your 2022 return. The crypto market plunged by nearly $1.4 trillion in 2022 after a series of bankruptcies, liquidity issues and the collapse of FTX, one of the biggest crypto exchanges. If you're itching to claim a crypto loss on your taxes, there are a few things to know, experts say. Offset gains with crypto lossesOne of the silver linings of plummeting assets is the chance to leverage tax-loss harvesting, or using losses to offset gains. If your crypto losses exceed other investment gains and $3,000 of regular income, you can use the rest in subsequent years, Greene-Lewis said.

☆ After a tough year for crypto, here's how to handle losses on your tax return
▼ + stars: | 2023-01-30 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Plus, there's currently no "wash sale rule" for crypto. The rule blocks the tax break if you buy a "substantially identical" asset 30 days before or after the sale. If your crypto losses exceed other investment gains and $3,000 of regular income, you can use the rest in subsequent years, Greene-Lewis said. But it's easy to lose track of carryover losses and miss future opportunities to lower taxes, she warned. If you wind up getting, say, 10% back after claiming a bad debt deduction, that 10% becomes regular income.

☆ IRS steps up efforts to target U.S. taxpayers who failed to report and pay taxes on cryptocurrency transactions
▼ + stars: | 2022-09-26 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The IRS continues to chase U.S. taxpayers who failed to report and pay taxes on cryptocurrency transactions with a new court order allowing a summons for customer records. The agency will issue a so-called "John Doe summons" requiring M.Y. It's not the first IRS summons for crypto records, but it's unusual because the broker seems to be "quite small," signaling the possibility of more to come, said Andrew Gordon, tax attorney, CPA and president of Gordon Law Group in Skokie, Illinois. While the first summons for crypto tax records triggered IRS letters for unreported income and unpaid taxes, the response took a few years, said Matt Metras, an enrolled agent and cryptocurrency tax specialist at MDM Financial Services in Rochester, New York. "I'm curious to see what happens with all this data they're collecting," said Metras, noting that the IRS may try to match it with investors' tax returns.

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