Big Gains in Crypto? Don't Miss These Tax Strategies!
With crypto prices soaring again, 2025 may be a massive tax year for many investors. Whether you’ve scored big with Bitcoin, Ethereum, or altcoins like XRP and Solana, you’ll need a solid tax plan to avoid giving too much back to the IRS. In this in-depth YouTube Live, CPA and attorney Mark J. Kohler breaks down 10 real-world crypto tax strategies—5 that are overhyped and 5 that can be game-changers for your wallet.
5 Overhyped Crypto Tax Strategies
These are commonly promoted online, but Mark warns they may not deliver the savings you expect:
1. HODL If You Can
If you hold your crypto less than 12 months, your gains are taxed as ordinary income (up to 37% federal + state). Only long-term holders (12+ months) get the lower capital gains rate.
2. Buy in a Roth IRA
(But for the Future) If you’re already sitting on gains, it’s too late for this one. But next time you buy, use a Roth IRA to grow gains tax-free.
3. Opportunity Zone Investments
Sounds great, but new legislation defers taxes only until 2027—barely a one-year delay if you invest now.
4. Donate to Charity
Yes, it’s a legit tax strategy. But if you want to keep your crypto profits, this doesn’t help unless charitable giving is already part of your plan.
5. Harvest Tax Losses
If you don’t have other losses, this one doesn’t help much. And if you made big gains—good for you—but this won’t save you.
5 Best Crypto Tax Strategies
These are Mark’s top five tax strategies that can eliminate or significantly reduce your crypto tax bill:
1. Short-Term Rental Strategy (STR Loophole)
Use your crypto gains as a down payment on an investment property. By cost-segregating the building and meeting the 100-hour material participation rule, you can write off depreciation to offset 100% of your gain.
Example:
- Crypto gain: $200K
- STR depreciation: $256K
- Federal tax bill: $0
2. Oil & Gas IDC Deduction
Invest in oil & gas projects via an LLC and take advantage of the Intangible Drilling Costs (IDC) deduction. This can produce up to a 90% write-off against ordinary income.
Example:
- Crypto gain: $200K
- IDC deduction: $180K
- ROI potential: 10–20% annually + possible 2x exit in 3–5 years
3. Charitable Remainder Trust (CRUT)
Donate appreciated crypto (unsold) into a CRUT, pay no immediate tax, receive a lifetime income stream, and get a tax deduction (around 10%). Great for: Large gains ($400K+) Passive investors Long-term income seekers
4. Business Equipment Investment (Bonus Depreciation)
If you’re a small business owner, use crypto gains to purchase business assets. Bonus depreciation lets you write off 100% of that equipment.
Tip:
- Must be a legitimate asset used in operations
- Works well with Mark’s “Trifecta” strategy
5. Self-Rental with Commercial Property
Stop renting and start owning. Use your gains to buy your office or workspace through an LLC and rent it to your S-Corp business.
Benefits:
- You depreciate the property
- Create rental income streams
- Offset capital gains with accelerated cost-seg depreciation
Bonus Tips:
Best Crypto Tax Software: Koinly – Easily sync your wallets and exchanges to automatically generate IRS-ready tax reports. 👉 Use Mark J. Kohler’s exclusive link for a special discount.
Roth IRA for High Earners: Use the “Backdoor Roth” strategy to contribute even if your income is too high
SALT Deduction Workaround: Pay state taxes through your S-Corp to fully deduct them and free up your itemized deduction space
Final Thoughts
You don’t have to be rich to get wealthy—you just need the right tax plan. If you’ve made significant crypto gains in 2025, these strategies can help you diversify your wealth, reduce your tax bill, and build a more secure financial future.
Ready to Dive Deeper into Crypto Tax Strategies?
If you found these strategies helpful, don’t miss the Crypto Tax Summit this September — the ultimate event for crypto investors, tax professionals, and advisors who want to stay ahead of the IRS.
Join Mark J. Kohler and a lineup of expert speakers for two days of advanced tax strategies, real-world case studies, and hands-on planning techniques that can save you thousands.
👉 Reserve your seat now at CryptoTaxSummit.com – Space is limited and prices increase soon!
