The US tax authority (IRS) has identified cryptocurrency ETFs that use a redemption technique to circumvent income limits imposed on investment funds. This practice, called a “redemption trick”, allows certain funds to reduce their taxable income by distributing securities instead of cash. The IRS is highlighting which crypto investment vehicles could face tax audits. Funds using this strategy risk tax assessments and penalties.
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Disclaimer: this content is for information purposes only and is not financial advice. Cryptocurrencies are highly volatile: you may lose all of your capital. Always do your own research. Legal notice
