Live: So You’re a Bitcoin HODLer… Here’s What the IRS Thinks of That 😬

Even if you never sell your Bitcoin, you’re not immune from taxes.

Borrowing against your crypto can create hidden liabilities if you’re liquidated and when you finally sell, your long-term capital gains can reach 20–30% including federal, NIIT, and state taxes.

Crypto tax expert Clinton Donnelly, known as the Crypto Tax Fixer and founder of CryptoTaxAudit, breaks down the real IRS implications for Bitcoin HODLers.

He explains when borrowing can make sense, when it becomes risky, and why liquidation events can surprise even seasoned investors.

What you’ll learn:
- How long-term capital gains on Bitcoin are actually taxed
- The real cost of borrowing against crypto (12–15% interest)
- When forced liquidation creates taxable gains
- Why you should never repay Bitcoin loans with Bitcoin itself
- How to protect yourself with professional tax planning

🔥 Protect your crypto before tax season:
Book a Crypto Tax Consultation 👉 https://www.cryptotaxaudit.com/crypto-tax-consultation

🔗 Official IRS reference:
IRS Capital Gains and Losses 👉 https://www.irs.gov/publications/p544

⏱️ TIMESTAMPS
0:00 Intro — What it means to be a Bitcoin HODLer
0:20 The dream: hold forever, price goes up
0:40 Long-term capital gains explained (15–20% + NIIT + state taxes)
1:00 Borrowing against Bitcoin tax-free or risky?
1:20 The hidden risk: forced liquidation = taxable event
1:45 Interest rates 12–15% worth it?
2:10 Why borrowing is not always smart for HODLers
2:30 The best strategy: repay with outside income
2:55 Closing advice from the Crypto Tax Fixer

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🎙️ About Clinton Donnelly
Clinton Donnelly, LLM, EA, founded CryptoTaxAudit.com, the leading crypto tax and IRS audit defense firm. Known as the “Crypto Tax Fixer,” he has helped thousands of U.S. investors file bulletproof crypto tax returns and defend against IRS scrutiny.

🏆 In 2025, CryptoTaxAudit was named Cryptocurrency Taxation Services of the Year by Financial Services Review.

Our team specializes in:
✅ Complex gain calculations and wallet tracking
✅ Expat and foreign disclosure compliance
✅ IRS audits, defense, and forensic strategies
✅ Audit-resistant crypto tax preparation

📬 Work with us:
👉 https://www.cryptotaxaudit.com/tax-prep-waiting-list

⚠️ NOTICE
Beware of scammers in comments or Telegram groups. We will never ask for your personal information on social media.

📜 Disclaimer: This video is for educational purposes only. Always consult a licensed tax professional before making financial or tax decisions.

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