The Twelve Days of Taxmas – Cryptocurrency and the Wash Sale Rule
As Christmas approaches, Klatzkin is putting a twist on a holiday classic. But rather than filling your head with drummers drumming and golden rings, we’re focused on providing tips through “The Twelve Days of Taxmas” blog series that could help minimize your tax liability.
On the eighth day of Taxmas, my accountant reminded me to take advantage of the wash sale rules that do not apply to cryptocurrency and harvest losses to reduce taxable gains. For example, in 2021, you can sell a cryptocurrency at a loss and repurchase the same coin within 30 days and keep the loss on the initial sale, unlike traditional stock.
Contact Us
For additional information on cryptocurrency and taxes or to learn more about how Klatzkin can help with another tax-related issue, click here to contact us. We look forward to speaking with you soon.
©2021 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation.