FMP

FMP

No More Tax Loss Harvesting From Cryptos

The House Ways and Means Committee is planning to shut down one of the most lucrative tax loopholes that many crypto investors use to harvest their tax losses.

The wash sale rule applied to digital assets would take effect Jan.1, treating them like stocks, meaning crypto investors have to wait 30 days between the selling date of the cryptocurrency and the repurchasing date, when a tax deduction is involved. This move could cost cryptocurrency holders around $17 billion.