PANews reported on October 21st that, according to CoinDesk, crypto lending company Arch has launched TaxShield. This service leverages a specific provision of US tax law—bonus depreciation under IRS Section 168(k)—to allow investors to deduct the cost of mining equipment from their taxable income. It works like this: users pledge Bitcoin as collateral to obtain an overcollateralized loan from Arch, then use the loan proceeds to purchase and host mining equipment through Blockware. Investors can deduct the full purchase cost in the first year, potentially avoiding hundreds of thousands of dollars in taxes, while continuing to earn monthly Bitcoin mining rewards. Arch co-founders Himanshu Sahay and Dhruv Patel stated that this service, developed in collaboration with Bitcoin educator Mark Moss and Blockware, is primarily targeted at high-income Bitcoin holders. They explained that a client with $1 million in taxable income could reduce their federal tax bill by approximately $400,000 by maintaining a Bitcoin position and earning mining income. Arch's TaxShield service aims to provide high-net-worth digital asset holders with a suite of services typically found in traditional finance but typically targeted at high-net-worth individuals. Arch plans to launch a trading service in the coming months and is considering a card product later.PANews reported on October 21st that, according to CoinDesk, crypto lending company Arch has launched TaxShield. This service leverages a specific provision of US tax law—bonus depreciation under IRS Section 168(k)—to allow investors to deduct the cost of mining equipment from their taxable income. It works like this: users pledge Bitcoin as collateral to obtain an overcollateralized loan from Arch, then use the loan proceeds to purchase and host mining equipment through Blockware. Investors can deduct the full purchase cost in the first year, potentially avoiding hundreds of thousands of dollars in taxes, while continuing to earn monthly Bitcoin mining rewards. Arch co-founders Himanshu Sahay and Dhruv Patel stated that this service, developed in collaboration with Bitcoin educator Mark Moss and Blockware, is primarily targeted at high-income Bitcoin holders. They explained that a client with $1 million in taxable income could reduce their federal tax bill by approximately $400,000 by maintaining a Bitcoin position and earning mining income. Arch's TaxShield service aims to provide high-net-worth digital asset holders with a suite of services typically found in traditional finance but typically targeted at high-net-worth individuals. Arch plans to launch a trading service in the coming months and is considering a card product later.