Is there a way to use capital losses to offset ordinary income when dealing with cryptocurrencies?

7 answers

• Shepard StrongJun 10, 2025 · a month ago
  Yes, you can use capital losses from your cryptocurrency investments to offset your ordinary income. This is known as tax loss harvesting. When you sell a cryptocurrency at a loss, you can use that loss to reduce your taxable income. However, there are certain rules and limitations that you need to be aware of. For example, you can only use capital losses to offset capital gains and up to $3,000 of ordinary income per year. Any remaining losses can be carried forward to future years. It's important to consult with a tax professional or accountant to ensure you are following the proper procedures.
  603

  302
• Birch Maxwell Lazo-MurphyJul 03, 2025 · 17 days ago
  Absolutely! If you've experienced losses in your cryptocurrency investments, you can use those losses to offset your ordinary income. This strategy is commonly referred to as tax loss harvesting. By selling your cryptocurrencies at a loss, you can deduct the losses from your taxable income. However, it's crucial to understand the specific rules and regulations surrounding this practice. Keep in mind that you can only use capital losses to offset capital gains and a limited amount of ordinary income each year. It's advisable to seek guidance from a tax expert or financial advisor to navigate the complexities of tax loss harvesting.
  638

  213
• Samarth PandhareJan 31, 2023 · 2 years ago
  Yes, you can definitely use capital losses from your cryptocurrency investments to offset your ordinary income. This is a common strategy known as tax loss harvesting. By selling your cryptocurrencies at a loss, you can reduce your taxable income. However, it's important to note that there are certain limitations and rules you need to follow. For instance, you can only use capital losses to offset capital gains and up to $3,000 of ordinary income per year. Any excess losses can be carried forward to future years. It's always a good idea to consult with a tax professional or accountant to ensure you're maximizing your tax benefits.
  638

  160
• SjubbworksApr 26, 2025 · 3 months ago
  When it comes to using capital losses to offset ordinary income from cryptocurrency investments, the answer is yes! This strategy, known as tax loss harvesting, allows you to deduct your losses from your taxable income. By selling your cryptocurrencies at a loss, you can offset your capital gains and up to $3,000 of ordinary income per year. Any remaining losses can be carried forward to future years. It's important to consult with a tax advisor or accountant to ensure you're following the proper procedures and taking advantage of all available tax benefits.
  564

  113
• SundaySmokeyNov 03, 2020 · 5 years ago
  Yes, you can use capital losses from your cryptocurrency investments to offset your ordinary income. This is a strategy called tax loss harvesting. By selling your cryptocurrencies at a loss, you can deduct the losses from your taxable income. However, there are some limitations to be aware of. You can only use capital losses to offset capital gains and up to $3,000 of ordinary income per year. Any excess losses can be carried forward to future years. It's recommended to consult with a tax professional or accountant to ensure you're taking full advantage of this strategy.
  578

  97
• Hinh KhungMar 10, 2024 · a year ago
  Yes, you can use capital losses from your cryptocurrency investments to offset your ordinary income. This is a common practice known as tax loss harvesting. By selling your cryptocurrencies at a loss, you can deduct the losses from your taxable income. However, there are some rules and limitations you need to be aware of. You can only use capital losses to offset capital gains and up to $3,000 of ordinary income per year. Any remaining losses can be carried forward to future years. It's always a good idea to consult with a tax professional or accountant to ensure you're maximizing your tax benefits.
  606

  87
• leasonSep 08, 2024 · 10 months ago
  Yes, you can use capital losses from your cryptocurrency investments to offset your ordinary income. This is a strategy known as tax loss harvesting. By selling your cryptocurrencies at a loss, you can deduct the losses from your taxable income. However, there are certain rules and limitations you need to consider. For example, you can only use capital losses to offset capital gains and up to $3,000 of ordinary income per year. Any excess losses can be carried forward to future years. It's advisable to seek guidance from a tax professional or accountant to ensure you're making the most of this opportunity.
  613

  77