Best CPAs in Myrtle Beach, SC

New post: Cryptocurrency Losses and Your Taxes - If you’re one of the many cryptocurrency investors, you may have losses to report. The factors that affect traditional paper money also affects digital currency and has led to significant losses for many. If you own cryptocurrency, you should definitely report it on your federal tax return. The IRS requires it and views cryptocurrency as property rather than currency, per se. The good news is that you can claim your losses on your taxes – within limits. DEDUCTION You can use your crypto losses as an income tax deduction up to $3,000. However, you won’t be able to do so if you had total capital gains across all your assets. CAPITAL GAINS It's possible to lower or offset your capital gains, and future capital gains if carried forward, by claiming a loss on your crypto. A strategic selling off of assets at a loss is known as crypto tax loss harvesting and can offset your gains. You can also carry forward those losses to future tax returns. You’ll use the same method to report crypto losses as you would crypto gains. Crypto isn’t considered a security, so selling it and buying it back within 10 days isn’t technically considered a crypto wash sale. However, you should consider safer ways to reduce capital gains. SPECIAL FORMS The IRS requires special forms to report gains and losses from cryptocurrency. It can be difficult to quantify short-term and long-term losses and gains. The best solution is to seek the services of...