Following up on yesterday's tax tip... You might have heard about tax lost harvesting. Selling bitcoin and then buying it right to recognize a loss for a given tax year. But would you ever want to harvest a tax gain? Maybe if your gains are taxed at zero percent. Let's walk through an example. You are retired/didn't have any income for the year. You have 1 bitcoin purchased over a year ago at $60k. Bitcoin goes up to 100k. You could potentially sell, buy it right back. Realize the $40k gain taxes at zero %. And your new cost based goes from $60k to $100k
Satoshi Pacioli Accounting 's avatar Satoshi Pacioli Accounting
Bitcoin Tax Tip of the day. Bitcoin held over a year is taxed at a lower rate in the US. Even the IRS wants you to Hold.
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