Mark Kohler covers four crypto tax strategies: using wash-sale losses to rebalance your portfolio, holding for 12 months to qualify for long-term capital gains rates, donating crypto through charitable remainder trusts to avoid taxes while keeping income, and sheltering mining and trading inside Roth IRAs and HSAs.
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Understanding how cryptocurrency is taxed. With that said, let me tell you two or three strategies here. Go back to the passive side. You're trading, you're staking your defi. One of your first ways to save is to do wash sales when crypto goes down a little sell, take the loss, rebuy it immediately. Number two, hold your crypto at least 12 months if you can because now you get long term capital gain. Next you can use what's called charitable remainder trusts where you donate your crypto and sell it tax free and reinvest it and grow it tax free and you get payments for the rest of your life life. Now the next strategy is don't do the deal. Don't do it. Do it in your Roth IRA, do it in your HSA, do it in your 401K. You can do all transactions except for collectibles in a retirement account tax free. I do a crypto mine tax free in my HSA and in my Roth.