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CRYPTO TAX LAWYER Explains: How to LEGALLY Avoid Crypto TaxesFlorida has no state income tax and exempts crypto Delaware, Pennsylvania, Virginia, and West Virginia levy both corporate income and gross. West Virginia does not specifically address the sales and use taxes implications of virtual currency, such as Bitcoin, although West Virginia. According to the IRS, a digital asset (e.g., virtual currency, cryptocurrency, or crypto) is treated as property for federal tax purposes.