Tax-Loss Harvesting Can Soften Crypto Losses
— Harvesting, Taxloss, Gains, Offset, Soften, Lavalle, Bitcoin, Crypto, Sell, Loss — 1 min read
Bitcoin is off roughly 65% from its November all-time high. IRS allows taxpayers to use losses in stocks and other investments, including crypto, to offset gains. Taxpayers can deduct up to $3,000 against taxable income for that year and carry forward the leftover losses. CPA: Buyers should pay for an app to match up their sale with the highest cost they paid for the crypto, which is called HIFO (highest in, first out) and is especially helpful in a falling crypto market. The IRS considers a security sold at a loss and repurchased within 30 days as a “wash sale’s that can’t be written off, this view doesn't apply to cryptocurrency, Lou LaValle said. Source