Swiss Bitcoin App Relai Secures MiCA License in France - European Expansion Accelerates
Bitcoin banking goes legit in Europe as Swiss crypto app Relai clears regulatory hurdles.
MiCA Green Light
Relai's French license under the Markets in Crypto-Assets framework signals the app's strategic push into European markets beyond its Swiss home base. The approval demonstrates how crypto firms are adapting to Europe's evolving regulatory landscape.
Compliance First
The MiCA license positions Relai to operate across EU member states with regulatory certainty - something traditional finance still struggles with across borders. Because nothing says innovation like filling out paperwork.
European Bitcoin access just got smoother, while regulators finally catch up to what crypto natives knew years ago.
The Ultimate List: 11 Insider Secrets for Zero Capital Gains Tax (List First!)
- Master the Year-Plus Principle to unlock low preferential rates.
- Execute Strategic Tax Gain Harvesting to reset your cost basis tax-free.
- Maximize the Netting of Losses via disciplined Tax-Loss Harvesting.
- Navigate the 61-Day Minefield of the Wash Sale Rule to protect deductions.
- Implement Precision Selling by optimizing your Cost Basis Method.
- Leverage the Triple Tax Shield of the Health Savings Account (HSA).
- Utilize Asset Location by maximizing Roth and tax-deferred accounts.
- Exploit the Philanthropic Loophole by donating appreciated stock.
- Plan for the Ultimate Elimination through the Step-Up in Basis at Death.
- Claim the Home Run Exemption on the sale of your primary residence.
- Achieve Decade-Long Deferral using Qualified Opportunity Funds (QOFs).
Strategy Deep Dive: The Foundation of CGT Avoidance
1. The Year-Plus Principle: Mastering the Holding Period
The holding period of an asset is the single most critical factor determining the investor’s tax liability upon sale. Long-term capital gains tax rates apply exclusively to assets held for more than one year. These rates are structured to encourage long-term investment, offering three preferential tiers: 0%, 15%, and 20%.
Conversely, short-term capital gains, arising from the sale of assets held for one year or less, are penalized by being taxed at the same rate as ordinary income. For 2025, these rates range from 10% up to 37%. For a high-income filer subject to the top federal income tax rate, selling an asset one day shy of the one-year mark can result in a tax liability nearly double that of a long-term sale. This immediate and substantial tax difference makes strict adherence to the one-year-plus rule non-negotiable for any serious investor. Every trade execution must be viewed through the lens of this holding period cliff, with portfolio managers exercising diligence to ensure that an advantageous sale is not derailed by premature timing.
2. The Zero-Rate Zone: Strategic Tax Gain Harvesting
Tax gain harvesting is a powerful, yet often overlooked, proactive strategy used to legally and permanently raise the cost basis of an investment without incurring tax liability today. This strategy relies entirely on exploiting the 0% long-term capital gains tax bracket.
For 2025, this zero-tax bracket extends to taxable income thresholds up to $48,350 for single filers and $96,700 for married couples filing jointly. An investor anticipating a low-income year—perhaps due to retirement, a career break, or deferred income—can strategically sell highly appreciated assets while their total taxable income falls within this 0% zone. The investor realizes the full gain on the sale, but because they are in the lowest bracket, the federal tax rate on that gain is zero.
Immediately after the sale, the investor can repurchase the exact same asset. Because this transaction involves realizing a gain, the complex limitations of the Wash Sale Rule (which only applies to losses) are irrelevant. The resulting effect is that the asset’s cost basis is instantaneously “reset” to the higher market price, allowing all future appreciation to compound starting from that new, higher basis. This successfully locks in the appreciation tax-free today, preventing the investor from paying the 15% or 20% rate on that same appreciation when they sell the asset years later in a likely higher tax bracket. This requires multi-year income forecasting but offers significant long-term savings.
3. Netting the Losses: The Power of Tax-Loss Harvesting
Tax-loss harvesting is the disciplined process of offsetting realized capital gains with realized capital losses. This mechanism provides a valuable double-benefit: direct capital gains elimination and, subsequently, ordinary income reduction, creating an immediate, tangible tax mitigation opportunity.
When an investor sells an underperforming asset for a loss, that loss is first used to offset all realized capital gains dollar-for-dollar. For example, a $$30,000$ realized loss can completely eliminate a $$25,000$ realized gain, saving the investor the full capital gains tax liability on the $$25,000$ profit. Assuming the investor was in the 15% long-term bracket, this WOULD save $$3,750$ in taxes.
The residual net loss (in this example, $$5,000$) then provides a secondary benefit. Up to $$3,000$ of this remaining loss can be used to directly offset and reduce the investor’s ordinary taxable income. If that investor is in the 35% ordinary income bracket, deducting $$3,000$ saves an additional $$1,050$. Finally, any remaining loss (in this case, $$2,000$) is carried forward indefinitely to offset future gains in subsequent years. This strategy allows sophisticated investors to transform underperforming assets into two distinct types of tax savings, providing both capital protection and income mitigation, making it the most powerful annual strategy for active portfolio managers.
4. The 61-Day Minefield: Navigating the Wash Sale Rule
While tax-loss harvesting is immensely powerful, its effectiveness is strictly governed by the “Wash Sale Rule.” This rule exists to prevent taxpayers from claiming a loss deduction when they are not genuinely detached from the investment position.
A wash sale is triggered if a security is sold at a loss and the taxpayer acquires the same or a “substantially identical” security within the 61-day window that begins 30 calendar days before the sale and ends 30 calendar days after the sale. Transactions that constitute an acquisition include automatic dividend reinvestments, the exercise of compensatory stock options, and purchases in other non-taxable accounts.
The true danger of the Wash Sale Rule lies in its broad application across all accounts the taxpayer or their spouse controls, including accounts held outside the primary brokerage and, critically, retirement accounts like IRAs. If a loss is disallowed because the replacement security was purchased inside a tax-sheltered account (where basis adjustments are irrelevant), the loss deduction is permanently sacrificed. When a wash sale is triggered in a taxable account, the loss is disallowed for the current year, but the loss amount is added to the cost basis of the newly acquired shares, and the original holding period is added to the new shares. This converts an immediate deduction into a complicated deferral. To maintain market exposure while harvesting losses, the critical compliance move is to immediately buy a non-substantially identical substitute asset (e.g., an ETF tracking a different benchmark or a rival company’s stock).
The wash sale rule applies across all account types, including your own and your spouse’s accounts.
Table: The Wash Sale Rule in Practice
5. Precision Selling: Optimizing Your Cost Basis Method
The cost basis of an asset—typically its purchase price plus any commissions or fees—is the foundation for calculating taxable gains or losses. A larger cost basis naturally results in a smaller taxable capital gain upon sale.
Effective tax avoidance involves managing and optimizing this basis. Fees and commissions paid during the purchase of an investment should be added to the cost basis, increasing it. Conversely, fees paid upon sale should be subtracted from the sale price to determine the net profit. Furthermore, if dividends or distributions are reinvested, those earnings are generally treated as income in the year they were received; they must subsequently be added to the cost basis to avoid paying tax on the same amount twice when the asset is finally sold.
For investors holding multiple lots of the same security purchased at different times and prices, the choice of cost basis accounting method is a powerful lever for tax control. Methods include FIFO (First-In, First-Out) or Average Cost. However, the most strategically useful method is. Specific Identification allows the investor, at the moment of sale, to designate exactly which lot of shares to sell. For instance, an investor might hold a lot purchased at $$10$ and a lot purchased at $$50$. If the current market price is $$40$, using Specific Identification allows the investor to select the $$50$ lot to realize a loss that can offset other portfolio gains, rather than being forced to sell the $$10$ lot (using FIFO), which would realize a large taxable gain. This active management of basis provides critical flexibility for managing annual tax liability.
Tax-Sheltered Wealth Building: Utilizing Strategic Accounts
6. The Triple Tax Shield: Maximizing the HSA
The Health Savings Account (HSA) is widely considered the most powerful tax-advantaged vehicle in the US tax code due to its unique “Triple Tax Advantage”. It provides three layers of tax mitigation unavailable in any other single account structure:
The HSA is strategically superior to a Roth IRA, which offers tax-free growth and withdrawals but requires after-tax contributions. The HSA combines the up-front deduction of a Traditional IRA with the tax-free withdrawals of a Roth IRA for health costs. Furthermore, after age 65, withdrawals for any purpose are treated similarly to a Traditional IRA, taxed only as ordinary income, thus serving as an excellent secondary retirement vehicle. Since all internal growth is shielded, high-growth, high-turnover investments that typically generate significant taxable capital gains distributions should be prioritized for placement within the HSA to ensure permanent CGT avoidance.
Table: Comparison of Tax-Advantaged Growth Accounts
7. Lifetime Tax-Free Growth: Roth IRAs and 401(k)s
Beyond the HSA, Roth Individual Retirement Accounts (IRAs) and Roth 401(k)s offer the most definitive method for permanent capital gains avoidance. Although contributions are made with after-tax dollars, all internal growth and capital gains realized are completely sheltered from taxation, provided the distributions are qualified (typically after age $59frac{1}{2}$ and holding the account for five years). By contrast, Traditional IRAs and 401(k)s only defer the capital gains tax; all withdrawals, including the original gains, are taxed as ordinary income in retirement.
Sophisticated investors employ a strategy known asto optimize their portfolio across different account types. This strategy aligns the tax efficiency of the investment with the tax structure of the account. Investments that inherently generate a high tax burden—such as actively managed mutual funds with high portfolio turnover or taxable bonds that pay frequent income—should be located inside tax-advantaged accounts (Traditional or Roth IRAs/401k). This strategic placement successfully shields the frequent capital gains distributions and income payments from current tax liability. Conversely, tax-efficient investments, such as index funds with low turnover or tax-exempt bonds, can be held more comfortably in taxable brokerage accounts because they generate fewer realized capital gains or distributions subject to current taxation.
Advanced Deferral and Permanent Elimination
8. The Philanthropic Loophole: Donating Appreciated Stock
Donating highly appreciated, long-term held stocks or mutual funds directly to a qualified charity or Donor Advised Fund (DAF) provides one of the most effective methods for integrating portfolio management with tax avoidance. This strategy offers a superior financial outcome compared to selling the stock and then donating the cash proceeds.
By gifting the stock directly, the donor avoids the federal capital gains tax that would have been triggered had they sold the asset. For a high earner, this avoidance can eliminate up to a 23.8% tax liability (20% LTCG plus the 3.8% NIIT) on the appreciation.
Simultaneously, the donor receives an itemized income tax deduction for the full Fair Market Value (FMV) of the security at the time of the donation. This powerful dual benefit—avoiding tax on the gain and claiming a deduction for the full value—significantly lowers the net cost of the charitable contribution while maximizing the funds available to the organization. This also serves as an excellent, tax-free mechanism for rebalancing a concentrated portfolio without suffering adverse tax consequences.
9. The Ultimate Exclusion: Step-Up in Basis at Death
The most complete and permanent method for eliminating capital gains tax liability on assets is through the Step-Up in Basis rule, a cornerstone of estate planning.
When an investor dies, their capital assets (stocks, real estate, bonds) are legally assigned a new cost basis equal to the Fair Market Value (FMV) on the date of death. Consequently, any appreciation that accrued during the deceased investor’s lifetime is entirely eliminated from the tax rolls. If the heirs choose to sell the asset immediately, they realize virtually no capital gain and thus owe zero capital gains tax. They will only owe tax on any further appreciation that occurs after the date of death.
This principle emphasizes that investors concerned about estate taxes and capital gains should strongly favor holding their most highly appreciated, low-basis assets until death. This approach is strategically superior to gifting the assets during life, as gifting transfers the original low cost basis to the recipient. If the recipient sells the gifted asset, they become liable for the capital gains tax on the appreciation that occurred while the original donor held the asset. The Step-Up in Basis is, therefore, the ultimate elimination strategy for long-term wealth transfer.
10. Home Run Exemption: The Primary Residence Rule (Section 121)
A specific and highly lucrative exclusion exists for capital gains realized from the sale of a primary residence. Taxpayers may exclude up to $$250,000$ of the gain if single, or up to $$500,000$ if married filing jointly.
This exemption is governed by two requirements: the taxpayer must have owned and used the home as their principal residence for at least two out of the five years preceding the sale. The home can be a house, condominium, mobile home, or even a houseboat.
For real estate investors, the 2-out-of-5-year rule provides significant strategic flexibility. An investor can own a rental property (a highly taxable investment), move into it for two years to establish it as a primary residence, and then sell it, shielding up to half a million dollars of cumulative appreciation from capital gains taxation. This powerful exclusion can be claimed once every two years, making it an essential component of tax-smart real estate planning. The exclusion applies to both federal and conforming state tax codes.
11. Deferred Investment: Qualified Opportunity Funds (QOFs)
Qualified Opportunity Funds (QOFs) were established to encourage investment in economically distressed communities, and they offer sophisticated investors an exceptional dual opportunity for tax deferral and permanent avoidance.
The first benefit is immediate gain deferral. An investor can defer capital gains realized from the sale of almost any asset (e.g., stocks, a business, or a secondary home) by reinvesting the gain amount into a QOF within 180 days. Unlike a 1031 exchange, which only covers real estate and requires reinvesting all proceeds, QOFs offer wider flexibility regarding the source of the gain. The deferred gain is not taxed until the end of 2026 or until the QOF investment is sold, whichever occurs first.
The second, and most compelling, benefit is the permanent elimination of capital gains on the QOF investment itself. If the QOF investment is held for 10 years or more, any appreciation realized inside the QOF during that holding period becomes entirely exempt from federal capital gains tax. This provides a unique path for aggressive, long-term wealth growth that remains perpetually tax-free, transforming a current capital gain liability into an opportunity for future zero-tax growth.
Essential Tax Rate and Account Comparison Tables
The following data provides critical context for the tax strategies discussed, grounding the advice in current US tax law and account structures.
Table 1: 2025 Long-Term Capital Gains Tax Brackets and Thresholds
Frequently Asked Questions (FAQ)
What is the Net Investment Income Tax (NIIT)?
The Net Investment Income Tax (NIIT) is an additional 3.8% surtax imposed on certain net investment income. This tax applies to capital gains, dividends, interest, and passive income from businesses, including income derived from trading financial instruments. The NIIT is a critical consideration for high earners because it increases the top combined federal tax rate on long-term capital gains from 20% to 23.8%, and the short-term rate from 37% to 40.8%.
The NIIT only applies if an individual’s Modified Adjusted Gross Income (MAGI) exceeds specific statutory thresholds: $$200,000$ for single filers or heads of household, and $$250,000$ for married couples filing jointly. Effective capital gains tax avoidance for high-net-worth investors must incorporate strategies not just to minimize the primary capital gains rate (0%, 15%, or 20%), but also to manage the underlying MAGI to minimize or eliminate exposure to the additional 3.8% NIIT.
How does gifting appreciated stock to a low-income family member work?
While the Step-Up in Basis is reserved for assets passed at death, investors can use strategic gifting to leverage a family member’s lower tax bracket, particularly the 0% long-term capital gains bracket. An investor who holds stock purchased decades ago, which is now highly appreciated, can gift that asset to a family member whose taxable income is below the 0% threshold (e.g., below $$48,350$ if single in 2025).
The key tax rule here is that the recipient receives the donor’s original low cost basis. However, because the recipient’s income is low, they can sell the gifted asset, realize the substantial capital gain, and pay 0% federal tax on that gain, up to their bracket limit. The donor must remain aware of the annual gift tax exclusion limit (e.g., $$19,000$ per recipient in 2025) to avoid using their lifetime gift and estate tax exemption. This is an advanced strategy for intra-family wealth optimization.
What happens if I sell “collectibles” (art, coins, metals)?
Gains derived from the sale of “collectible assets,” which include items such as fine art, antiques, coins, and precious metals, are treated differently under the tax code compared to standard financial securities.
If these assets are held long-term (more than one year), the gain is subject to a maximum federal tax rate of 28%. This contrasts sharply with the standard maximum LTCG rate of 20%. If the collectibles are held short-term (one year or less), their gains are taxed at ordinary income tax rates, which can climb as high as 37%. Investors must be aware of this differential treatment, as misclassifying these assets can lead to unexpected and substantially higher tax liabilities.
Can I use tax-loss harvesting in my IRA?
The investment vehicles available for implementing tax-loss harvesting are strictly limited to taxable investment accounts. Retirement accounts, such as Traditional IRAs, Roth IRAs, and 401(k)s, are already designated as tax-deferred or tax-exempt. Because capital gains realized within these accounts do not generate a current tax liability, the use of capital losses within them is neither necessary nor permitted to offset gains in taxable accounts.
It is important to understand the compliance contrast: although one cannot harvest losses in an IRA, the Wash Sale Rule does apply to IRAs. This means selling a security at a loss in a taxable account and repurchasing it in an IRA is forbidden, highlighting the asymmetric complexity where a retirement account can invalidate a deduction in a taxable account, but cannot generate its own deduction.
Conclusion and Final Disclaimer
Effective capital gains tax avoidance is the defining characteristic of a successful long-term investor. It is achieved not through accidental savings but through disciplined, proactive, and complex planning that leverages specific legal statutes. The true power lies in strategically utilizing three key environments: the 0% tax bracket (via Gain Harvesting), specialized tax-advantaged accounts (HSA and Roth IRAs), and critical estate planning mechanisms (the Step-Up in Basis). By focusing on the difference between short-term and long-term holding periods, meticulously managing cost basis, and understanding the fatal traps of the Wash Sale Rule, investors can implement legitimate strategies to permanently suppress, defer, or eliminate the burden of capital gains taxation, ensuring greater capital retention for future compounding.
The strategies detailed in this report are for informational purposes based on current US tax law (including 2025 projected thresholds) and do not constitute financial, investment, or legal advice. All complex tax planning decisions must be executed in consultation with a licensed tax professional or CPA.
