Bitcoin and other crypto prices have recently been highly volatile. If you are holding bitcoin or other crypto, you may well not want to sell until the market recovers, when it is down. But if you owe taxes and the crypto market is up, how about paying them in bitcoin (or selling bitcoin to pay your tax in dollars)?
Selling may trigger tax losses that can be used next year, too. And in at least one American state, paying tax in bitcoin is a reality. In Ohio, you can now make state tax payments in bitcoin. It's only possible to pay in bitcoin, at present, but the permitted crypto should expand, according to OhioCrypto. com.
Ohio beat out others in the United States, such as Arizona, Georgia, Utah and New Hampshire, where efforts to accept crypto for taxes failed. The transaction fee is zero during an initial three-month introductory period and then 1% thereafter. Even if you owe taxes to Ohio, that does not necessarily mean you qualify.