- Compass Mining sends mined bitcoins directly to individual retirement accounts, partner of Choice IRA.
- BTC mining model similar to Airbnb, individual miners are provided with a hosting facility that is motivated to avoid taxes on Bitcoin mining income.
- More Compass Customers Starting Mining, USA Is Developing As A Hub For BTC Miners.
A leading mining company in the United States is providing its customers with Bitcoin mining income without triggering a taxable event. The US has emerged as a hub for Bitcoin miners since the BTC hashrate migration.
Compass Mining helps customers avoid taxes on Bitcoin by sending BTC to their IRA
Compass Mining, a US-based crypto mining company, offers its customers the ability to avoid taxes on the bitcoins they mine through the company. By purchasing mining hardware through their individual retirement accounts (IRAs), individuals can evade taxes on mining revenues.
The two companies, crypto custodian Kingdom Trust, which offers a digital asset-friendly retirement plan – Choice IRA, and Compass recently signed an agreement. Together they are working on this project that helps US customers save on taxes. Kingdom Trust currently holds over $ 18 billion worth of assets across 20,000 assets.
Through Compass, individual miners have access to a hosting facility that runs their hardware (purchased through Choice IRA). The company has applied the Airbnb model to mining BTC.
Currently, miners are deterred by tax implications as they tax twice on the income they make from the bitcoin they mined and the capital gains made from the sale. By choosing Compass, customers can receive payouts in their Choice IRA and save tax payments on them.
Miners involved in the hashrate migration from China who own mining rigs are not eligible for the tax break. However, this implies that Compass Mining is creating a circular economy for Bitcoin and adding more miners to the network through its offering.
Ryan Radloff, CEO of Choice, says:
We’re always looking for solutions for customers trying to save more of their hard-earned money and planning for their future. To be able to buy a compass miner from within your IRA and mine bitcoin in a tax-privileged account is an incredible opportunity.
China’s crackdown on BTC mining motivated more miners to migrate to the US, where renewable energies offer a cleaner, cheaper option. Compass will fuel this trend by helping its US customers make money from Bitcoin mining.
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