Although it might seem counterintuitive, crypto losses can technically help you save money.
The IRS treats cryptocurrencies as property rather than currency and investors incur standard capital gains and losses on their trades.
The IRS permits taxpayers to use losses in crypto investments, as well as stocks and other investments, to offset gains. Not only can you use crypto losses to fully offset any gains you might have made in stocks or other trades, but if you lose more than you gain in a year, you can deduct up to $3,000 against your taxable income. If you lose more than $3,000, it can even be carried forward every year until you die to offset gains in future years. Long story short, crypto losses don’t have to be all bad, they can be put to work for you.
All of this said, you do have to sell the cryptocurrency to take the capital […]
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