Carlton Fields’ Blockchain Technology and Digital Currency Co-Chair Justin S. Wales and Miami international tax attorney Rahul P. Ranadive authored an article in Forbes entitled, “Bitcoin: if Not HODLing, Consider Donating.”
The article explains “HODL,” the misspelled mantra among cryptocurrency investors of holding onto bitcoin or other volatile cryptocurrencies to reap long-term gains, and what the tax consequences are when these investors liquidate a portion of their portfolio to lock in those gains.
“The IRS treats cryptocurrencies as personal property, not currency. Therefore, buying and selling cryptocurrencies is the same as buying and selling gold or stock,” they wrote. “Donating cryptocurrency to your favorite public charity (and not to a private foundation) can help you save taxes on the coins you do sell.”
Read the article.
Learn more about Carlton Fields’ Blockchain Technology and Digital Currency practice.