Shehan Chandrasekera, head of tax strategy at CoinTracker, offered practical advice on how digital asset holders can optimize tax outcomes while meeting expectations for accurate reporting and documentation.
Tax Loss Harvesting
Tax loss harvesting allows investors to sell digital assets that have declined in value, realize a capital loss, and use that loss to offset capital gains from other investments. Chandrasekera described tax loss harvesting to Checkpoint as “one of the simplest levers you can pull to optimize your tax bill,” especially with cryptocurrencies, which are not subject to the so-called wash sale rule that applies to equities.
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