Cryptocurrency Tax Loss Harvesting 101 - Save Money On Your Taxes | CoinLedger

[@1990mrburns]

why is the tax loss harvesting tab not there anymore

[@HedvigKaercher]

Great content, as always! I need some advice: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?

[@Jmac19994]

Excellent stuff. Thank you.

[@coinledger]

You're welcome!

[@digitalprograming]

In one of your other videos, you said that crypto tax losses for a previous year. If not harvested can roll over to the following year is this correct

[@jamestegarden2584]

Is there a chance that IF a bill passes and wash sale for crypto is enacted will the IRS retroactively apply the new law to all of 2022? Someone I know mentioed this as a possibility and it seemed abit strange to me that this might happen..IF they did change the law this year..wouldnt it most likely be applied to 2023? What do you think?

[@aribernays]

If they tried to retroactively enforce something that wasn’t law at the time, they will start a revolution and it won’t be good for anyone, including the criminal IRS. So don’t worry about that. Wash your 2022 losses before EOY to minimize the theft the IRS pretends it’s allowed to inflict on you!!

[@rommelpablo3552]

So that means I can re buy my crypto even if it's a minute later?

[@aribernays]

Yes and you should before EOY if you have any unrealized capital losses (in crypto)

[@nilangs]

I am not able to see the preview of capital gains for 2022. It wants me to upgrade & pay $49.99. I thought we are supposed to see a free preview.

[@technotes6165]

But let's say you have $60k loss. Can you claim that loss at once? I think you are limited to $3k loss per year if you are married filing joint and the remaining will be carryover losses, right?

[@evelynr.7596]

No you are limited to 3k per year as a deduction for income there’s no limit on capital gains

[@modernmovement4813]

Yes spot on. Sadly... isn't it crazy? And you can't work it backwards on a gain from the previous year

[@evelynr.7596]

@@modernmovement4813 I don’t think that’s sad I think it’s great. You have to be very careful what year you pick as a loss. For example this year I’m selling my business so I’m worried more about capital gains than income so this is the year where I’m going to take a huge loss. But I’m literally just rebuying my crypto. It’s great I think.

[@jaysant6958]

@@evelynr.7596 What if you take a 60k loss in a year where you had no capital gains, and so you only deduct 3k that year, but the next year you have 100k in capital gains. Can you use the remaining 57k at once to offset the 100k capital gains?

[@coinledger]

@@jaysant6958 Yes, you can!

[@dtorres21]

Does it matter how quickly you buy back in? I would like to sell and immediately buy back.

[@SomeOne-fq7hp]

Yes I would wait a full day at least.

[@jaysant6958]

Yeah I don’t get it. What if you do that each time that you buy back in because you think it’s ready go back up but the value drops so you sell and do that over and over until you’re right? Do you just get to harvest all those losses?

[@aribernays]

@@jaysant6958 I think so, but the transaction fees would likely make this strategy generally a wash, pun intended. But ya you can keep selling and buying back at a lower price if it keeps going down in price, but the loss you're booking is based on your cost basis of the most recent purchase, so i don't see that making you rich. But I'm happy to be corrected. But yes, as far as the law currently is, you can harvest all those losses. Hope you made some moves in time! Happy 2023!

[@jaysant6958]

@@aribernays Yup I harvested some losses for sure right before the end lol

[@huck102]

If I upload a csv of all my transactions to date, if there was an older version previously uploaded to cryptotrader will the software replace or duplicated identical entries as well as adding any new.? ( I'm assuming edited will have the original added back)

[@coinledger]

It will ask you where you want to pickup with this most recent file import to avoid duplicates.

[@huck102]

@@coinledger Nice

[@jasonstaub3045]

Can you wash sale or harvest inside of my crypto Roth IRA?

[@cryptohook9395]

Good stuff!

[@ShaneVelezSS]

I'm looking to sell my BTC for a loss which i purchased for 35K just for the loss.. now considering its December.. will I have to still wait to rebuy after 30 days? or is it too late to take on that loss for this year? it is December 10th currently..

[@aribernays]

There’s no waiting period for wash sale for CRYPTO since it’s treated as property. You can sell and immediately buy it back at the same price, and you will have effectively realizedrealized your losses. This is the so-called loophole that will likely be done away with in the coming years, so be sure to do it while you can. It’s totally legal to wash your crypto losses and immediately buy them back. :-)

[@ShaneVelezSS]

@@aribernays wow!! thank you for the clarity! i thought Biden changed this for 2022! I guess i was wrong! thank you so much!

[@GR_BackingTracks]

Thanks... Time to wash the DOGE!

[@jaysant6958]

Wait, but isn’t the max you can tax loss harvest $3000 per year? I know it carries over but that $10k loss example, you made it seem like the whole $10k loss can be used at once. Unless that’s actually the case amongst all capital gains & losses, and maybe what I’m thinking of pertains to earned income only. If you can clear that up, that’d be great. My first time on this channel.

[@coinledger]

Capital losses deduct against an unlimited amount of capital gains if they occurred in the same tax year. So if you gained $10,000 on a bitcoin trade, then lost $10,000 on an ETH trade in the same year, these FULLY offset.

[@CreatedEqual]

Is there a limit to how much of a capital loss can be deducted from capital gains in a future year?

[@HappyWolf182]

Hi. I've put in $9k in crypto and lost the majority of it since 2020. If I my crypto does well this next year (2024l and goes back up to $9k, will I have to report it as income? Because technically I didn't make any money. I didn't report any losses this whole time I've owned crypto.

[@edd2184]

Save all those worthless tokens, dearly noted 😉

[@BleuBlakslee]

Great content- thank you