Realized vs. Unrealized Gains

If your Bitcoin doubles in value but you still hold it, that's an unrealized gain — it shows in your account balance but isn't taxed. The moment you sell, trade, or spend it, the gain becomes realized and enters your tax return for the year.

This distinction is central to crypto-backed mortgages: posting crypto as collateral doesn't realize the gain, so you get dollar liquidity without triggering tax. Selling the same crypto to fund a down payment would realize the gain immediately.

Why it matters for Milo customers

Milo's crypto-backed products are built around keeping gains unrealized. By pledging crypto as collateral instead of selling it, your gains stay paper — no tax event, no reset of the long-term holding clock.

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