I’ve got a little tip for you if you hold cryptocurrency. As you know right now, the market is fairly low on cryptocurrencies. If you bought in at a high time, you may be at a loss. Well, what can you do about it? Obviously, you can wait for the market to rebound, but a little technical difference may help you along the way.
Cryptocurrencies are not subject to all wash sale rule wash sale rule means that if you had a stock that you sold at a loss so that you could deduct that loss on your taxes and you turn around and bought it back within 30 days, those losses are suspended. So you can’t buy it right back, you can’t invest in that same company just to capture the loss. The wash sale rule does not apply to cryptocurrency, it’s not the same thing as stock.
So maybe we can use this to our benefit. Let’s talk about how, if you sell your crypto for a loss and then you sell some other stock that you have for a game, those two will offset each other. So you will not have any capital gain to pay taxes on, but the difference is you can buy your crypto right back. That few minutes apart, you can buy it right back and start it off at the new lower basis and push that forward.
So you can offset capital gains with losses, from cryptocurrency, and then buy your crypto right back. We have to sell it and then buy it all within a few moments of each other is fine. You don’t have any wash sale rules to apply when it comes to cryptocurrency.
So check that strategy out, hope that helps you be successful and take a bite out of taxes. I’m Donna Bordeaux with Calculated Moves. Please don’t forget to subscribe to our YouTube and follow us on Facebook.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.