Purchasing Commercial Real Estate Using Cryptocurrency Profits

4 Replies

Has anyone successfully used their cryptocurrency to purchase any kind of real estate? In other words, has anyone had a gain in cryptocurrency, sold that gain for a profit, then acquired real estate with those profits?

I'm trying to find a tax friendly way to withdraw funds from a crypto exchange to purchase another rental property. I did a little research and it seems that this might be possible through an Opportunity Zone? Any input would be greatly appreciated!

@Ryan Baxley

OpZones would be your best bet. It can be tricky if you are trying to do it yourself as you need to double the basis of the property which means making significant improvements/developing. If you don't have the skills to do so you could always consider a passive Opportunity Zone fund. CADRE, Fundrise, and other platforms offer these with smaller minimums.

@Tanner Crawley Thanks for the heads up. The challenging part is that, as far as I know, the gains need to remain "unrealized". In other words, you're unable to sell the cryptocurrency, transfer to your bank account, then invest in the fund after all is said and done.

Originally posted by @Ryan Baxley :

@Tanner Crawley Thanks for the heads up. The challenging part is that, as far as I know, the gains need to remain "unrealized". In other words, you're unable to sell the cryptocurrency, transfer to your bank account, then invest in the fund after all is said and done.

This is not true. You can absolutely sell the appreciated asset. Feel free to dm me if you need any more questions answered.