The secret to legally avoid crypto taxes in 2021 is to make your way into the lower long-term capital gains tax bracket.
You need to pay attention to your crypto holding period and on your taxable income.
Long-term capital gains grant you access to the following tax rates
- 0% – Taxable income up to $80.000
- 15% – Taxable income is $80,000 or more but less than $441,450
- 20% – Applies to the extent that your taxable income exceeds the thresholds set for the 15%
To qualify for these favorable tax rates, you must hold your crypto investments over a year before selling them.
Also, for the most accurate information, see the capital gains on the IRS webpage. Remember, that those number presented here is for a single household and will be different if you are a married household.
