How does tax loss harvesting work for digital assets like Bitcoin and Ethereum?

1 answers

• lanceNov 20, 2022 · 3 years ago
  Tax loss harvesting for digital assets like Bitcoin and Ethereum can be a useful strategy for minimizing tax liability. By strategically selling assets at a loss, investors can offset capital gains and potentially reduce their overall tax burden. However, it's important to note that tax laws and regulations surrounding digital assets can be complex and vary by jurisdiction. It's also worth mentioning that tax loss harvesting is not exclusive to any particular exchange or platform. Investors can implement this strategy on various exchanges or platforms that support the trading of digital assets. It's always a good idea to consult with a tax professional or accountant who specializes in cryptocurrency taxation to ensure compliance and maximize the benefits of tax loss harvesting.
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