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16129347 No.16129347 [Reply] [Original]

Guys, I fomoed into BTC at 12k earlier this year and bought 1 with fiat. Can I (and should I) sell it now, secure the $3000 capital loss and deduction for the year, and immediately buy it back? I do want to just hold and forget about it. Why wouldn't I want to do this?

Also don't feel sorry for me I'm killing it with Link.

>> No.16129350

>>16129347
Obv this is about burgerland

>> No.16129362

>>16129347
That... Actually sounds pretty smart. Assuming you can use the tax write-off, it'd make sense.

Of course, I'm of the opinion that BTC will never recover, so my own recommendation would be to sell and buy something else with that money.

>> No.16129364

>>16129347
That's called wash trading, and it's illegal

You could sell BTC then buy into ETH, but not BTC or any equivalents

>> No.16129375

any resources for basic info on US taxes and cryptocurrencies?

>> No.16129383

>>16129364
Thank you fren. I learned something today.

>> No.16129391

>>16129347
I thought you don't have to pay capital tax on crypto if you hodl for more than a year?

>> No.16129410

>>16129347

You’ll Hodl and buy more if you know what’s good for you

>> No.16129713

>>16129364
Its not wash trading and its not illegal its not a security. Good misinformation.

>> No.16129878

>>16129347
Ignoring the obvious wash trade here:
Max NET capital loss you can use to offset other income is $3000 per year, i think. Anything over that can by carried forward

Not ignoring the wash trade:
If you sell for a loss now, and rebuy within 30 days, your cost basis is still actual cost + disallowed loss.
Buy for 12k in 2017
Sell for $9000 now
$3000 loss

reBuy tomorrow for $9200
+ Dissalowed $3000 loss
New cost basis is: $12,200 for your next sale

so either wait 30 days to buy back in or buy ETH or something

>> No.16129886

>>16129347
That's called money laundering...... You do the math......

>> No.16129921

>>16129878
So basically OP needs to be out of BTC for a month to be able to claim the loss. He should just buy link, claim the loss, and hold link until $1000 EoY

>> No.16129943

>>16129391
you pay tax at a lower rate

>> No.16130150

>>16129364
>>16129878
https://koinly.io/guides/cryptocurrency-tax-guide/
>wash sale rule that prevents investors from realizing capital losses without the intention of actually selling the assets i.e. buying the assets back right after. Any stocks sold and bought back within 30 days will fall under the wash-sale rule. Any capital losses resulting from such sales will not be deductible. However, this rule is only applicable to US securities, it does not apply to Cryptocurrencies which have been classified as 'property' by the IRS.
Wash trading tax rules don't appear to apply to crypto.

>> No.16130311

>>16129364
No it's not it's called tax loss selling and it is widely known in investment circles and they even talk about 'tax loss selling season' It usually occurs in december.
Late december is a good time to snipe some ridiculously oversold stocks that had peaked somewhere in the beginning of the year.

>> No.16130389

>>16130311
That's not wash trading. The US tax year goes from January the 1st to December 31st. Why selling can occur near year end is to use capital losses from certain investments to reduce the capital gain made on other investments. This will reduce how much tax they will owe, for that given tax year. They're not selling something at a loss to buy it back in 30 days.
https://www.investopedia.com/terms/t/tax_selling.asp
>Tax selling involves selling stocks at a loss to reduce the capital gain earned on an investment. Since capital loss is tax-deductible, the loss can be used to offset any capital gains to reduce an investor’s tax liability. For example, let’s assume an investor has a $15,000 capital gain from the sale of ABC stock. He falls in the highest tax bracket and so will have to pay 20% capital gains tax, or $3,000, to the government. But let’s say he sells XYZ stock for a loss of $7,000. His net capital gain for tax purposes will be $15,000 - $7,000 = $8,000, which means that he’ll have to pay only $1,600 in capital gains tax. Notice how the realized loss on XYZ reduces the gain on ABC and, hence, reduces the investor’s tax bill.

>> No.16130401

>>16130389
*buy it back WITHIN 30 days

>> No.16130796

>>16129347
I'm in a similar situation with cap losses. back in 2015 I lost $10k in a stock. then the stock defaulted and now there's a huge class action lawsuits against the company to recover funds for stock holders. should I or could I claim cap losses on my $10k this tax season? and what if I get recovery money next year?

>> No.16130893

>>16130796
Your 10k loss will offset any capital gains for FY19.
Should you be looking at a net capital loss over 3k, the amount over 3k will be carried forward for FY20, and beyond until the loss if fully used.

The 3k you recognize as capital losses in the current tax period will offset any other income on your return, reducing your tax liability. Any amount received from the lawsuit will be considered income and taxed - this as no affect on what you do with your stock if you've already sold it.

But.... if you lost 10k in 2015 why wouldn't you have recognized all this in 2015? Are you saying you sold this year?

>> No.16130960

>>16129347
Take the loss and invest in CIX100. It's an index that holds bitcoin for the most part, but your risk is mitigated by its holdings in other alts (99 of the highest performing ones). Get it now while it's low and it's only available on nasdaq and kucoin. I made $300 already because I bought at 0.58, and then I made 50 with the volatility. Bitcoin will reach its ATH in October of 2020, exactly 11 months from now. Historically speaking, 6 months after the halving is when it hits the ATH.
Naysayers will claim that history won't repeat itself for the nth time because LTC didn't benefit that much, but LTC doesn't have the demand that BTC has. Furthermore, BTC will start being used by STARBUCKS next year. As far as alts go, not only will this insane BTC pump force money to flow into the altcoin market, but Chinese VCs are coming back. After the last crash, Chinese coins like Nebulas (arguably the best, most inventive coin out there) lost 90-95% of their value. This coincides with the fact 90% of Chinese VCs abandoned the market. They are now coming back, due to China's recent acceptance of blockchain technology.

tl;dr: Buy Nebulas, buy CIX100, wait until October of 2020, and then sell.

>> No.16131079

>>16130893
I never actually sold the stock ever. hence why I am able to participate in the lawsuits. the company defaulted and all the stocks became 'worthless' tho. Sun Edison is the company for those interested