A short YouTube tip from Donna Bordeaux (Donna Genie) explaining that cryptocurrencies are not subject to the stock-market "wash sale" rule. She advises that selling crypto at a loss can generate tax-losses that offset capital gains from other investments, and—unlike stocks—you may immediately repurchase the crypto to reset your cost basis.
I've got a little tip for you. If you hold cryptocurrency, as you know right now the market is fairly low on the cryptocurrencies. If you bought in at a high time, you may be at a loss. Well, what can you do about it? Obviously you can wait for the market to rebound, but a little technical difference may help you along the way. Cryptocurrencies are not subject to a wash sale rule. Wash sale rule means that if you had a stock that you sold at a loss so that you could deduct that loss on your taxes and you turn around and bought it back within 30 days, those losses are suspended. So you, you can't buy it right back. You can't invest in that same company just to capture the loss. The wash sale rule does not apply to cryptocurrency. It's not the same thing as a stock. So maybe we can use this to our benefit. Let's talk about how if you sell your crypto for a loss and then you sell some other stock that you have for a gain, those two will offset each other so you will not have any capital gain to pay taxes on. But the difference is you can buy your crypto right back, few minutes apart, you can buy it right back and start it off at the new lower basis and push that forward so you can offset capital gains with losses from cryptocurrency and then buy your crypto right back. You have to sell it and then buy it. All within a few moments of each other is fine. You don't have any wash sale rules to apply when it comes to cryptocurrency. So check that strategy out. Hope that helps you be successful and take a bite out of taxes. I'm Donna Bordeaux with calculated moves. Please don't forget to subscribe to our YouTube page and follow us on Facebook. Sat.
