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Gateway Capital Management, Inc. takes a balanced approach to asset management with a focus on real estate, managing assets, and payments for both real estate sales and rental income. In certain markets, crypto currencies are accepted for sales and rentals of real estate properties. When cryptocurrencies are received, Gataway Capital Management, Inc. consults with clients to assist them in setting up accounts at cryptocurrency exchanges, banks friendly to digital assets, and private self-custody cold wallets when applicable. Gateway Capital Management, Inc. does not give investment advise or take any role in the custody of digital assets. When applicable, security and escrow deposits are held on account for clients.

Accepting Cryptocurrency for Real Estate

Cryptocurrency can be used as an earnest money deposit when purchasing real estate and it can also be used for the final payment at closing. We typically use digital asset “Stablecoins” initially because the value of the coins is pegged to the U.S. Dollar. Currently, USDC (US Dollar Coin) and USDT (Tether) are the most commonly used cryptocurrency stablecoins.

Because of its volatility, we do not recommend using Bitcoin or any “Alt” coins for initial real estate transactions. The final payment, however, may be made with Bitcoin or Ethereum, as examples, because the value of these digital assets can be determined at any given date and time.

Real Estate | Payments | Digital Assets

Tax Considerations

Using Cryptocurrency in real estate transactions should not affect the tax implications of the real estate sale. A tax attorney or accountant should be retained for the final accounting, but the value of the sale should be reflected in the real estate closing documentation. Specifically, the sale price value will be compared to the basis of the property to determine any gain or loss on the sale. The fact that cryptocurrency was used for the earnest money deposit or final payment at closing should not affect the tax implications of the real estate sale. What is done with the cryptocurrency after that, however, may be a different matter.

About the company

Gateway Capital Management, Inc. was founded by William Holden in 2001. It had a dual function of Mortgage Brokerage and Real Estate Sales. The company is a licensed real estate broker in the state of Missouri, USA but no longer acts as a mortgage broker. The company also has real estate listings in the Dominican Republic and assists real estate developers in their initial marketing endeavors. Gateway Capital has extensive experience in cryptocurrency transactions in real estate and has participated in sale contracts using cryptocurrency for earnest money deposits and final payments at closing..

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