[USER]

I’m thinking of cashing out my bitcoin when it hits 100,000. I’m looking for reinvesting ideas that will not cause a tax burden.

I understand that selling Bitcoin can trigger capital gains taxes, so I’m interested in strategies that can help minimize the tax burden while still growing my investments.

Are there any specific asset classes or investment options that allow for tax-deferred growth or lower tax rates?

Should I consider using tax-advantaged accounts like IRAs or other types of retirement accounts?

Or are there other strategies such as tax-loss harvesting, direct reinvestment into Bitcoin or other cryptocurrencies, or even real estate investments that might provide tax benefits?

I’m open to suggestions on both short-term and long-term strategies.

Any insights from those who have navigated this process would be greatly appreciated!

[Bill]

That’s not how taxes work. Your gains will be taxed. It doesn’t matter what you reinvest in.

[Anthony]

Maybe. Maybe. Buying a real estate asset that is a prime candidate for a cost segregation study. And if you don’t yet know what that means, prepare for the learning curve!

[Shishir]

I have some in bitcoin but thinking of putting more looking at its growth. Is it a good idea to invest now or is it not late in game

[Sarah]

Good luck…btc already briefly hit 100k and then dipped. It was post election hype…

it’s still historically really high so you either wanna sell now or be prepared to wait for another major world event cause that’s likely the only thing that’s going to sky rocket it any time soon

[Tom]

It’s not too late. Look at the use cases, how it’s being sought after by more and more entities (e.g. Microstrategy), and how the supply is limited.

[Bill]

Unless its in a retirement account, It will be a taxable event as soon as you sell it, even if you leave the cash in the account

[Scott]

Bitcoin will be taxed as a capital gain (long or short depending on your holding period). It would not be taxable if it is in an IRA.

[Michael]

You realize that 100,000 is resistance. So when it goes through 100,000 you’re better off holding as it’s now price discovery.

If you want to take profits, now is the time… however IMO you’re getting out way too early

[Bill]

I am sure that you are not the only one thinking this. Why are you letting a milestone number wag your investment decisions?

[Jake]

Do you have a qualified opportunity zone to invest in real estate?
Besides that I’m just going to the advocate that 100k will look like a very low sale 4 years from now.

But if you don’t feel that way then might as well sell.

[Aaron]

Buy and hold portfolios of low/no dividend stocks don’t cause a tax burden.

If you do sell, make sure you set aside funds to cover capital gains taxes.

[Author]

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