Learn the IRS rules and act promptly, and you could get a tax benefit for years to come to ease your pain.
Investors in Bitcoin and other digital assets have been pummeled recently by the longest losing streak since 2011. If that’s you, you might be glad to hear that there are ways to ease some of the sting of those losses: Act promptly and you can cut your tax bill for next April and beyond.
The Internal Revenue Service allows taxpayers to use losses in stocks and other investments, including crypto, to offset gains. If your losses exceed your total gains for the year, you can deduct up to $3,000 against your taxable income. Losses beyond $3,000 can be carried forward every year until death to offset gains in future years.
Here’s the rub: You have to actually sell the investment to take the capital loss; it can’t just have dropped in value on paper. But crypto investors get a special deal. Stock owners have to follow what’s called the wash-sale rule; if they sell a stock for a...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...