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As you are aware, c corporations have the problem of double taxation. The corporation pays tax at federal rate of 21% and then you pay a tax rate of up to 37% on “dividends” that the owner with draws.

But it would seem logical that if you’re holding BTC and trading short term, the corporation is saving some tax. Then if you take a salary rather than a dividend, you will reduce your corporate income and the salary would be taxed at whatever rate you individual tax rate happens to be.

Obviously each tax scenario is different and depends on lots of factors. But given the right scenario, you may be better off than you think if gains are short term and held inside the c corp.

Bohemia 9mo ago

🤌 Thank you for the input. I just need to make sure I am crafting the right scenario. Please let me know if this something you are available and open to answer occasional questions on. Happy to tip or more formally pay. I have always prepared and submitted my own. It is a small biz and within my capabilities, so far. But a more knowledgable (on btc tax implications) person in my corner to bounce q's off of would be appreciated, as I move forward. Feels a bit like the wild west right now 😅

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Discussion

Chriso🇺🇸🇦🇺🦘⚡️ 9mo ago

Sure, hit me up anytime. If you’re using the BTC as capital in your business and not trying to take it out, I think it’s probably a good scenario to stay C Corp. if the gains will be short term and your individual tax rate is higher than 21%.