How can I avoid being taxed on Venmo when buying or selling cryptocurrencies?

3 answers

• Dec 27, 2021 · 3 years ago
  One strategy to avoid being taxed on Venmo transactions when buying or selling cryptocurrencies is to use a decentralized exchange (DEX) instead. DEXs operate on blockchain technology and allow for peer-to-peer trading without the need for a central authority. By using a DEX, you can bypass traditional financial institutions and potentially avoid taxation on your transactions. However, it's important to note that tax laws vary by jurisdiction, so it's always a good idea to consult with a tax professional to ensure compliance with local regulations.
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• Dec 27, 2021 · 3 years ago
  Another approach to minimize taxation on Venmo transactions involving cryptocurrencies is to hold your assets in a tax-advantaged account, such as a self-directed Individual Retirement Account (IRA) or a Roth IRA. By doing so, you can potentially defer or eliminate taxes on your cryptocurrency transactions. However, it's crucial to follow the specific rules and regulations set forth by the IRS for these types of accounts to avoid any penalties or legal issues.
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• Dec 27, 2021 · 3 years ago
  At BYDFi, we recommend using a combination of tax planning strategies to minimize the tax impact of Venmo transactions related to cryptocurrencies. This includes keeping detailed records of your transactions, accurately reporting your gains and losses, and taking advantage of any available tax deductions or credits. Additionally, it's important to stay informed about the latest tax laws and regulations surrounding cryptocurrencies to ensure compliance and minimize your tax liability.
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