Are you leveraging cryptocurrency holdings to offset tax obligations? According to a recent study, two-thirds of token investors aren’t claiming crypto losses and leaving money on the tax man’s table.
Below, we’ll review the issue. If you’re a crypto investor in need of tax advice, get in touch. We’re a firm of certified public accountants and crypto-knowledgeable attorneys.
Two-thirds of token investors aren’t claiming crypto losses and leaving money on the tax man’s table.
Study: A Lot of Crypto Investors Aren’t Taking Full Advantage of Tax Claims
Investors have always leveraged financial losses to offset tax obligations. The same rules apply for cryptocurrency investments. Token investors can liquidate crypto assets, claim the losses, and enjoy the tax break.
But according to Credit Karma, of an estimated $5 billion in crypto-related losses, only $1.7 billion will likely be realized on tax returns.
So the questions become: Are people not offloading their crypto assets because they’re HODL disciples? Or do folks not know that they can claim crypto losses on their taxes? According to Credit Karma, 61 percent of the survey respondents just didn’t realize they could leverage their token holdings to lower taxes.
Are people not offloading their crypto assets because they’re HODL disciples? Or do folks not know that they can claim crypto losses on their taxes?
We Craft Custom Crypto Tax Strategies That Save Money
U.S. tax law requires crypto investors to report gains and losses. If you didn’t make any transactions last year, and your crypto portfolio is a paper-only affair, you’ll likely won’t owe any taxes on them. However, if you traded tokens, you may owe capital gains taxes; how much depends on factors like income and the investment term.
Portfolios that include depleted 2018 crypto assets may be able to claim up to $3,000 in realized damages. Moreover, you can carry over losses exceeding the 3K benchmark to buffer any 2019 market rebound gains.
Whatever your case, we craft ideal tax positions for investors and businesses holding and trading crypto assets. We’re a team of certified public accountants and blockchain-friendly lawyers.
Get in touch today to begin the conversation. It’s a no-risk call to determine if we’re the right fit for your needs. And if we’re not, we’ll point you in the direction of someone who is.Connect With A Crypto Tax Lawyer Today »