Tax strategies for cryptocurrency investors

Description

Abstract: Cryptocurrency gains and losses exist only on paper until investors realize them by selling or exchanging their investments. This article explains that investors who expect to realize net capital gains this year may want to harvest losses to offset those gains by selling cryptocurrency or other investments that have declined in value. It also notes that a big advantage of selling cryptocurrency is that it isn’t currently subject to the prohibition on wash sales. A sidebar points out, however, that the Build Back Better Act, which at press time was stalled in the Senate, would extend the wash sale rule to cryptocurrency.