Tax loss harvesting is an advanced strategy used by professional traders. Recently, we had the CEO of TokenTax on ChainTalk to discuss crypto taxes. He talked about many important rules, strategies, and issues facing crypto taxes right now.
During his time at professional institutions like JPMorgan and getting an MBA at Wharton, he was able to learn a valuable strategy that professionals use to offset some of their gains towards the end of the year. This strategy is known as tax loss harvesting. Zac’s mission in starting TokenTax is to bring advanced level tax strategies to everybody. To learn more about tax loss harvesting in crypto, watch the video below.
Tax loss harvesting is the idea of selling an investment at a loss at the end of the year to offset any gains, with goal being to owe less in taxes.
With TokenTax, investors are able to see inside their dashboard which coins they are holding at a gain and at a loss. For example, if an investor is holding 500 $NEO, 300 at a gain and 200 at a loss, the investor can sell the 200 $NEO at a loss to offset the gains and owe less in tax. The investor can repeat this process for other coins he holds at a loss.
For a more in-depth explanation watch the video above and let us know what you think in the comments! Don’t forget to subscribe to our channel as we release new videos daily.
Obviously nothing in this article is meant to be investing or tax advice. Please consult a tax professional in your jurisdiction for the correct laws.