The One Crypto Tax Strategy to Know!

Because cryptocurrencies are classified as “property” rather than as securities, the wash-sale rule does not apply if you sell a cryptocurrency holding for a loss and acquire the same cryptocurrency before or after the loss sale.

You just have a garden-variety short-term or long-term capital loss depending on your holding period. No wash-sale rule worries.

This favorable federal income tax treatment is consistent with the long-standing treatment of foreign currency losses.

That’s a good thing, because folks who actively trade cryptocurrencies know that prices are volatile. And this volatility gives you two opportunities:

1. profits on the upswings
2. loss harvesting on the downswings

If you have any questions or would like a complimentary one hour tax review you can reach our office at:

VastSolutionsGroup.com

Phone: (888) 808-8278
Email: info@old.vastsolutionsgroup.com
Monday-Thursday 8:00 AM – 5:00 PM (Pacific)

Thank you for listening!

Kenner French, is a former small business contributor at Forbes.com, author of three books, an executive at AI-focused VastSolutionsGroup.com, a keynote speaker, and a Dave Matthews Band fan!