How to Legally Avoid Crypto Taxes

A simple strategy to avoid personal liability for cryptocurrency transactions no matter your country of citizenship.This is for entertainment purposes and not intended to be tax advice.It’s Tax Season — Markus WinklerTax season is here.It’s a busy time for tax accountants and also a time of concern for many cryptocurrency traders. It can also be a very costly time of year, given the tax implications of cryptocurrency trading for residents and citizens of many developed countries.For many countries, including the USA, Canada, Australia, and parts of Europe, cryptocurrency transactions are uniquely subject to capital gains tax and the onerous reporting requirements that come with it.Fortunately, there is a rather simple strategy to avoid the personal tax implications of cryptocurrency trading and potentially avoid capital gains liability altogether.This strategy, once exclusive to international businesses and the wealthy, is an option now easily accessible to most people.Crypto Gains & Losses — Kelly Sikkema on UnsplashIf common sense prevailed, a reasonable person would assume that crypto-currency, much like traditional fiat currency (euro, dollar, pound) would be treated as money by the regulators, but sadly this is not the case.Rather cryptocurrency is regulated (in most parts of the developed world) as a capital asset; just as your car, house, and computer are also considered capital assets. This rather peculiar treatment of cryptocurrency as a “capital asset” rather than “money” has significant ramifications for those individuals who buy and sell cryptocurrency in these countries.The profit and loss on capital assets (from a tax perspective), are determined at the time of sale. This means, for those cryptocurrency traders, each and every time cryptocurrency is sold, a taxable event is created (referred to as a capital gain or loss).For those individuals who engage in multiple transactions per day and live in one of these developed countries, this…