Capital Gains Tax (Crypto)

The IRS treats crypto as property, so selling, trading, or spending it is a taxable event. Your taxable gain is the sale price minus your cost basis. If you held the crypto for one year or less, the gain is short-term and taxed at your ordinary income rate (up to 37%). Held more than a year, it's long-term and taxed at 0%, 15%, or 20% depending on income.

A crypto-backed mortgage avoids this tax event entirely — posting crypto as collateral is not a sale, so no gain is realized. This is a major reason U.S. crypto holders choose crypto-backed mortgages over selling.

Why it matters for Milo customers

A crypto-backed mortgage or crypto-backed loan lets you tap your crypto's value without selling — meaning no realized gain, no capital gains tax bill, and your long-term holding period stays intact. This is the core financial case for borrowing against crypto instead of selling it.

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