The secret to legally keep away from crypto taxes in 2021 is to make your method into the decrease long-term capital positive factors tax bracket.
You want to concentrate to your crypto holding interval and in your taxable earnings.
Long-term capital positive factors grant you entry to the next tax charges
- 0% – Taxable earnings as much as $80.000
- 15% – Taxable earnings is $80,000 or extra however lower than $441,450
- 20% – Applies to the extent that your taxable earnings exceeds the thresholds set for the 15%
To qualify for these favorable tax charges, you have to maintain your crypto investments over a yr earlier than promoting them.
Also, for probably the most correct info, see the capital positive factors on the IRS webpage. Remember, that these quantity offered right here is for a single family and will probably be completely different in case you are a married family.