A press release was sent to Bitcoin Magazine. It states that U.S. Compass mining clients can now mine Bitcoin directly into a Choice Individual retirement account without triggering any taxable events.
According to current tax laws, income from Bitcoin mining can be taxed like income. When they have to sell bitcoins to pay other taxes, miners are also subject to capital gains tax.
Depending on the type of IRA they choose, miners can avoid tax on bitcoin income by mining in a Choice account.
Compass sent a statement to Bitcoin Magazine explaining that tax-efficient mining offers huge benefits to retail miners, and gives them another tool to make more money on a smaller scale.
Choice is an independent custodian that meets the requirements of the South Dakota Division of Banking. It also offers Kingdom Trust Company. Choice was the first retirement provider to offer one account for all clients’ retirement assets, digital or legacy, in May 2020. Choice currently has over 125,000 retirement accounts and more than $18 billion in assets.
Compass mining lets users mine efficiently without having to worry about logistics. They can rent or purchase machines and have them housed, maintained and operated for their benefit. This is the best place for average investors to mine at profit on a variety of scales. Retail miners have access to the same high quality mining hardware as industrial customers and verified hosting facilities.
Compass Mining surpassed 450 petahashs (PH) in July across all of its customers. Only retail miners who purchased hardware from Compass are eligible for the tax benefits of mining to a Choice IRA. The Choice account receives the mining payouts.
Choice CEO Ryan Radloff commented that it was an amazing opportunity to be able to buy a Compass miner in your IRA and mine Bitcoin in a tax-advantaged accounts. We are all excited to continue working with Compass as the industry evolves.