Compass Mining Tax Efficient Choice

U.S. Clients of Compass mining can now mine bitcoin directly into a Choice Individual Retirement Account without triggering a taxable event, per a press release sent to Bitcoin Magazine.

Under the current tax laws, revenue from Bitcoin mining is taxed as income. Currently, miners must also pay capital gains taxes when they are forced to sell some of their bitcoin to cover other tax obligations.

Through mining in a Choice account, miners avoid taxes on their bitcoin revenue in the short term and potentially indefinitely, depending on which type of IRA they use.

In the statement sent to Bitcoin Magazine, Compass explained: “tax-efficient mining presents enormous benefits to retail miners and empowers them with another tool to mine even more profitably at a smaller scale.”

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