Renowned attorney Jeremy Hogan has issued guidance to XRP holders targeted at assisting them in maximizing crypto tax obligation.
In a recent statement, pro-XRP attorney Jeremy Hogan provided valuable insights for crypto enthusiasts planning to capitalize on the 2024 crypto bull market. Hogan stressed the crucial role of strategic tax planning as investors seek to optimize for profits.
“In 2024, as you plan how to take profit and become CryptoRich, don’t forget to strategize for taxes,” the lawyer remarked.
Notably, his address was specific to the U.S. crypto community. The lawyer urged crypto investors to consider the tax implications of their investment strategies, focusing on the duration of token holdings.
Don’t Sell XRP Held for Over a Year
Hogan pointed out that holding a token for over one year can result in a more favorable tax scenario. According to him, long-term capital gains, taxed at a lower rate of 15%, apply to tokens held more than a year.
In contrast, a higher 30% rate applies to short-term gains on tokens held for less than a year.
Furthermore, Hogan highlighted a common practice among some investors who move to sell XRP to venture into other tokens and reinvest in XRP after generating profits.
This strategic endeavor comes amid XRP’s prolonged discouraging price performance. For instance, XRP has failed to print significant gains for holders in the past two months, while other rivals like Solana and Cardano are making investors millionaires.
The pro-XRP lawyer noted that temporarily parting XRP for other assets could be lucrative. However, he underlined the potential downside.
Specifically, Hogan pointed out that such a trader forfeits their long-term tax status on XRP. As a result, they expose themselves to two short-term tax rates.
I have seen some people say they're selling XRP, buying another token and will buy XRP again after making some money in the other token.
Fair enough, but now you have given up your long-term tax status on XRP and given yourself two short-term tax rates. Just be aware…
— Jeremy Hogan (@attorneyjeremy1) January 2, 2024
Signing off his tweet, Hogan wrote “I’dRatherPayLess,” suggesting that investors should prioritize retaining their long-term tax benefits over succumbing to short-term underwhelming performances.
In other words, the seasoned attorney encourages XRP investors to be cognizant of the unintended tax consequences of their trading decisions.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
