What are the tax implications of holding digital currencies in a choice IRA?

1 answers

• Dec 28, 2021 · 3 years ago
  When it comes to the tax implications of holding digital currencies in a choice IRA, it's important to understand the rules and regulations set by the IRS. Digital currencies are treated as property, which means that any gains or losses from their sale or exchange are subject to capital gains tax. However, by holding digital currencies in a choice IRA, you can potentially defer taxes on any gains until you withdraw the funds from the account. It's important to note that early withdrawals from a choice IRA may be subject to penalties in addition to the capital gains tax. It's always a good idea to consult with a tax professional to ensure you are fully aware of the tax implications and any potential penalties associated with holding digital currencies in a choice IRA.
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