How can I avoid paying taxes on cash back from credit cards when investing in cryptocurrencies?

3 answers

• Dec 30, 2021 · 3 years ago
  One way to potentially avoid paying taxes on cash back from credit cards when investing in cryptocurrencies is to consult with a tax professional. They can provide guidance on the specific tax laws in your jurisdiction and help you find legal ways to minimize your tax liability. It's important to stay compliant with tax regulations and seek professional advice to ensure you're making informed decisions.
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• Dec 30, 2021 · 3 years ago
  While I'm not a tax expert, it's generally recommended to keep detailed records of your cryptocurrency transactions, including any cash back received from credit cards. This will help you accurately report your earnings and potentially offset any taxable income. Additionally, consider researching tax strategies such as tax-loss harvesting or holding investments for longer periods to qualify for lower tax rates. Remember to consult with a tax professional for personalized advice based on your specific situation.
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• Dec 30, 2021 · 3 years ago
  As a representative of BYDFi, I would advise you to consult with a tax professional to understand the tax implications of cash back from credit cards when investing in cryptocurrencies. Tax laws vary by jurisdiction, and it's important to comply with regulations to avoid any legal issues. A tax professional can guide you on the best practices for reporting your earnings and help you minimize your tax liability within the boundaries of the law.
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