So here is my situation:
1) I have income from two sources only: my W-2 and my Crypto capital gains (short term). This totals about $230k for 2021.
2) I have been wanting to start an LLC for vehicle sharing / rentals, and finally have the funds to do so with the 2021 income. So I created, in TX, a single member LLC in Dec. in order to purchase vehicles and offer them up for rental on Turo, HyreCar, etc.
3) I am a Head of Household with 3 dependents under my roof. Tax bracket of 35%.
Questions:
A) How are my crypto capital gains taxed? Is it considered “ordinary income” like my W-2 and are both income sources combined and taxed as one? Or does the IRS consider them separate?
B) Can my crypto capital gains be used to purchase LLC business vehicles utilizing section 179 and/or bonus depreciation to start my rental business and also reduce my tax liability?
C) Theoretically, if I buy two vehicles totaling 100k under my LLC with that income, will this drop my taxable income to $130k? And therefore my tax bracket to 24%?
Thank you. If you need any more information, please let me know.
