Yes! You can contribute cryptocurrency to the Craft Pod on a tax-deferred basis under Section 721 of the U.S. tax code. This section lets you contribute property to a partnership (like the Pod) in exchange for ownership units without triggering immediate capital gains tax.
Since the IRS treats crypto as property, appreciated crypto assets (like Bitcoin, Ethereum, etc.) qualify for this treatment just like stocks or real estate.
How it works
Instead of selling your crypto for cash (and paying taxes on the gain) to invest, you simply contribute the crypto directly into the Pod. In return, you get an ownership interest in the Craft Pod.
Thanks to § 721, any built-in gain on your crypto isn’t recognized when you contribute it. So you will not owe capital gains tax just for moving your crypto into the Pod.
This works the same way we accept concentrated stock positions tax-deferred.
Once you contribute, your crypto becomes part of the Pod’s diversified portfolio. Craft may choose to hold it or convert it into other assets as needed.
Your tax deferral remains in place as long as your investment stays in the Pod.
You only face taxes when you exit the Pod or when it distributes assets to you — and even then, there are strategies to keep deferring.
We recommend talking with a tax advisor before contributing crypto, just to make sure it’s the right move for you. But rest assured: our exchange fund structure is designed specifically to allow tax-efficient contributions of appreciated assets, whether that’s crypto or stock.
Please read our full disclosures before making an investment decision.