Can my foreign-owned LLC invest in a Bitcoin ETF? What are the tax implications?
Now that spot Bitcoin ETFs are approved in the U.S., I'm thinking of buying shares through my foreign-owned LLC's brokerage account instead of holding actual Bitcoin. I figure an ETF would simplify the tax reporting since it trades like a stock.
But would investing in a Bitcoin ETF through my LLC create any special tax issues? Is a Bitcoin ETF treated differently than direct Bitcoin ownership? And would gains from selling ETF shares be subject to U.S. withholding tax?
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