Tax Loss Harvesting
Selling investments at a loss to offset capital gains and reduce your tax bill.
intermediate
tax
Explained Simply
Tax loss harvesting involves strategically selling crypto positions that are currently at a loss. These realized losses offset your capital gains dollar-for-dollar. If losses exceed gains, you can deduct up to $3,000 per year from ordinary income (US), with remaining losses carried forward. Watch for wash sale rules — repurchasing the same asset within 30 days may disqualify the loss.
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This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for advice specific to your situation.