In the USA, the Tax Cuts and Jobs Act changed the laws on investment expenses so that most investment expenses are no longer tax deductible. Does that strictly apply to crypto as well? Is there any way around this?
As an example, suppose I am invested in a “nodes” project where for every node you own, there is a set monthly fee in BNB (let’s say 0.01 BNB for sake of example). The node project pays out in its own coin (let’s call it XYZ) but you have to pay the monthly fee as 0.01 BNB.
Is there any way to make this fee tax deductible? What about if the wallet were moved into an LLC or SCorp? In that case I would probably have to pay self employment tax, but I could at least get the deduction. Is there any way to deduct without taking this drastic step?