Op-ed: How to Turn Your Bitcoin and Crypto Losses into Tax Savings
Bitcoin and crypto losses can be used to offset other types of capital gains for tax purposes and therefore save you money. This article addresses how to handle your losses and the important items that you need to keep in mind for your crypto taxes in the US. For tax purposes, selling cryptocurrency is treated the same as selling any other type of capital asset — stocks, bonds, property etc. This means that you realize either a capital gain or a capital loss anytime you sell Bitcoin or any other crypto. When you realize a capital gain (you sold your crypto for more than you purchased it for), you owe a tax on the dollar amount of the gain. However, when you sell your crypto for less than you purchased it for, you incur a capital loss, and you can use this loss to offset gains from other trades or even a gain from the sale of other property like your stocks in your portfolio.Unfortunately in the crypto landscape we are currently experiencing, there are plenty of losses to go around, and it is wise to file these capital losses in order to reduce your taxable income and save money.
