Can you use capital losses from cryptocurrency trading to offset ordinary income?

3 answers

• Feb 17, 2022 · 3 years ago
  Yes, you can use capital losses from cryptocurrency trading to offset your ordinary income. According to the IRS, cryptocurrency is treated as property for tax purposes. This means that capital gains and losses from cryptocurrency trading are subject to capital gains tax rules. If you have capital losses from cryptocurrency trading, you can use them to offset capital gains from other investments, such as stocks or real estate. If your capital losses exceed your capital gains, you can also use the excess losses to offset up to $3,000 of ordinary income each year. Any remaining losses can be carried forward to future years.
  629315
• Feb 17, 2022 · 3 years ago
  Absolutely! The IRS allows you to use capital losses from cryptocurrency trading to offset your ordinary income. This can be a great way to reduce your tax liability. Just make sure to keep accurate records of your cryptocurrency transactions and consult with a tax professional to ensure you are following all the necessary rules and regulations.
  347116
• Feb 17, 2022 · 3 years ago
  Yes, you can use capital losses from cryptocurrency trading to offset your ordinary income. This is a great strategy to minimize your tax liability. However, it's important to note that the rules and regulations surrounding cryptocurrency taxation can be complex. It's always a good idea to consult with a tax professional who is knowledgeable in cryptocurrency taxation to ensure you are taking advantage of all available deductions and credits.
  446112