- Bitcoin miners in the U.S. can now legally avoid tax by mining into a retirement account from Choice
- Choice has teamed up with Compass Mining to offer a way for Bitcoin miners to add to their retirement pot tax free through Bitcoin mining
- Mining to the Choice IRA does not trigger a taxable event
‘Bitcoin’ and ‘tax avoidance’ are, sadly, two terms that have gone hand in hand since its very early days. However, there is finally a way that Bitcoin miners can say proudly that they avoid tax thanks to a linkup between investment firm Choice and Bitcoin mining host Compass Mining who have teamed up to allow Bitcoin miners to mine straight into their Individual Retirement Account (IRS) tax free.
Mining for the Future
Tax laws in the U.S. treat Bitcoin mining earnings as income, meaning they are taxed in line with regular earnings, both to the value of the Bitcoin mined and then again when coins are sold in order to keep the operation running. However, Compass Mining says that by mining through their facilities straight into a compatible Choice IRA that users can avoid paying tax on the earnings side, thanks to the Choice’s inclusion of Bitcoin as an investable asset within some IRA portfolios.
Mining straight to an IRA does not trigger the kind of taxable event that would otherwise occur through regular Bitcoin mining, reducing the tax burden on the miner and allowing them to plan for the future.
Tax Free Bitcoin Mining Deal is “Ground-breaking” Says CEO
Whit Gibbs, CEO of Compass Mining, called the deal “ground-breaking” while Choice CEO Ryan Radloff called the ability to mine Bitcoin into a “tax-advantaged account” represented an “incredible opportunity.” Compass Mining prides itself on the ease with which users can begin Bitcoin mining through their several mining farms, and they might just see their popularity explode if they can continue offering tax free income options.