Short-Term vs. Long-Term Gains

U.S. federal tax law splits capital gains by holding period. If you hold a crypto asset for one year or less before selling, any gain is short-term and taxed at your ordinary income rate — the same as wages, up to 37%. Hold it longer than one year and the gain is long-term, taxed at 0%, 15%, or 20% depending on total income.

For crypto holders with significant unrealized gains, this is a strong argument for posting crypto as collateral rather than selling: a crypto-backed mortgage gives you dollar liquidity without realizing any gain at all, short-term or long-term.

Why it matters for Milo customers

Long-term holders gain the most from Milo's products. If your crypto is held >1 year, selling triggers a 0/15/20% long-term rate; sell <1 year and you pay ordinary income (up to 37%). Borrowing against it avoids the realization entirely.

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