I have heard about this crazy proposal to not pay taxes on crypto earnings. I don’t agree with it yet, but let me explain how it could make sense in some cases.
Here’s a question: Do you want to put the earnings from your investments into your Roth IRA? If you’re an accredited investor, then congratulations! Now you can do that since you are earning “qualified dividends” right now! From what I’ve read, one should be able to spend that money anytime without penalty. You should also not be taxed on that money for years past your traditional income tax filing date (since the investment has already been converted to equity). The big downside is subjecting yourself to 10% of any gains you accrued after making the investment for qualified dividends. This seems like a small price to pay compared to other options available if you still want access to your distributed dividends. One final note, according what I’ve read early last week over at /r/bitcoin_taxes , taxation policy isn’t changeable once you get money into an IRA account so there are no plans for changing this stupid rule just yet.