Learn why you can't invest in bitcoin miners within your Unchained IRA
No, Unchained does not allow for mining within the Unchained IRA. The reason we don’t allow this is because any IRA that engages in a “trade or business” under IRS rules becomes subject to something called Unrelated Business Income Tax, or UBIT for short. Currently, there is no direct existing IRS guidance as to whether mining is considered a “trade or business” for UBIT purposes. However, we do know that for other types of tax purposes, mining typically is considered a “trade or business.” So there is a strong chance that the IRS would consider mining a “trade or business” for UBIT purposes as well. Some IRA companies have decided to be more aggressive and promote mining as an option. However we are not comfortable exposing our clients to potential large tax liabilities at this time. That said, Unchained Capital is not a law or CPA firm, so consult with your tax advisor with regard to any specific tax questions.
Note: No contents of this post may be relied upon as tax, legal, or financial advice, as they have not been tailored to you and have not been reviewed by any attorney, financial advisor, or tax professional. For any questions related to your own specific situation, please consult with your own attorney, tax professional, and/or licensed financial advisor.