Questions Personal and Family

How do I cash out Bitcoins without paying taxes?

Airtract

Sumit Bawa

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Bitcoin is a great way to earn a huge amount of cash within a short period of time only by investing a lump sum amount digitally. Here, the money is generated through mathematical solutions digitally, and they keep on increasing according to the ongoing market price. But, most people face a common problem in cryptocurrency transactions while they try to withdraw the cash from bitcoins. Here are a few tips for you through which you can cash out your bitcoins without paying the tax.

1. One of the best ways to avoid tax while cashing out your bitcoin amount is to utilize the whole amount in the form of a gift. If you refer your bitcoin amount to any of your friends or relative as gifts or vouchers, then you can easily gain the whole amount and avoid the taxations. There is no tax charged for gift amounts. 

2. Another way to avoid taxation is to invest your bitcoin amount in the form of gold as it is a tax-free investment. Moreover, it is the best way to increase your investment amounts for the future too. There are options to fix your bitcoin amount in gold.

3. Try to invest your bitcoin amount in life insurance policies. This is in such a way where you can not only save tax but also gain future security at the same time. 

4. You must be aware of an Individual Retirement Account or IRA which can serve as great security after your retirement. Bitcoin cryptocurrencies can be utilized by the IRA to save it from tax. 

5. If you have the scope to relocate to another country and achieve citizenship from a country that is free of tax, then bitcoin cash out can be easier for you by avoiding the payment of tax. You can even give up your citizenship if you want to save tax from your bitcoin amount.