- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Is it really true that 'wash sale' rules don't apply to crypto?
Posted on 12/3/22 at 4:41 pm
Posted on 12/3/22 at 4:41 pm
quote:
If you own any crypto or NFT's, this is even more relevant
On current IRS classification, there are no rules against "wash sales" in crypto
This means you can sell your crypto, "harvest" the loss, and immediately buy it back
No net change in your position, but lower taxes
LINK
Can you really do this?
5
Posted on 12/3/22 at 9:01 pm to rickgrimes
As of now.
Crypto occupies a weird place in the IRS.
It's considered property, not a security, and securities are subject to wash sale rules. Securities have a specific definition, mainly, it must be traded on a centralized exchange.
Crypto occupies a weird place in the IRS.
It's considered property, not a security, and securities are subject to wash sale rules. Securities have a specific definition, mainly, it must be traded on a centralized exchange.
Posted on 12/3/22 at 10:36 pm to rickgrimes
quote:
Can you really do this?
Yes.
Posted on 12/4/22 at 10:58 am to LSUFanHouston
True
Posted on 12/5/22 at 9:06 am to rickgrimes
Yes
Posted on 12/5/22 at 11:55 am to rickgrimes
Correct, everyone should be doing this right now if the current price is below their cost basis
Posted on 12/5/22 at 12:31 pm to TigerTatorTots
quote:
Correct, everyone should be doing this right now if the current price is below their cost basis
Isn't that like everyone here except WikiTiger?
Posted on 12/5/22 at 7:50 pm to rickgrimes
They changed that this year I thought…
Posted on 12/6/22 at 10:16 am to TigerTatorTots
So you incur a loss to lower your taxable amount, then wouldn't that gain on the sell negate the loss? wouldn't you have a higher gain since now your purchase price is lower?
Posted on 12/7/22 at 3:37 am to Scoobs
quote:
So you incur a loss to lower your taxable amount, then wouldn't that gain on the sell negate the loss? wouldn't you have a higher gain since now your purchase price is lower?
You can write off net losses or up to $3k per year off your ordinary income if you’re married. The future gains are taxed at capital gains rates, which are not as high as ordinary income rates.
You could write off a $30k loss at 22% marginal tax rates for 10 years, then only pay 15% capital gains tax on $30k in profit upon selling the investment at your original cost. That saves you $2100 in taxes, for example.
Posted on 12/8/22 at 6:52 pm to rickgrimes
quote:def not, plenty of people well above their cost basis if they bought before 2020
Isn't that like everyone here except WikiTiger?
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News