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This is exactly right, in fact if you think about tax breaks on losses it can actually make a lot of sense to sell yourself the same asset at a loss. In the ca
by ishjoh 5y ago
This is exactly right, in fact if you think about tax breaks on losses it can actually make a lot of sense to sell yourself the same asset at a loss. In the case of crypto you probably wouldn't sell an NFT at a loss, but a coin would definitely make sense to sell to yourself at a loss.
- vineyardmike 5y agoIANAL I don’t think thing that’s how taxes works. If you sell yourself the security, it never left your hand so you didn’t realize a loss.
- brianwawok 5y agoI think he is trying to describe tax loss harvesting https://www.investopedia.com/terms/t/taxgainlossharvesting.asp https://www.investopedia.com/terms/t/taxgainlossharvesting.a... What robo advisors can do.. is sell say.. asset A that perfectly tracks an asset (say S&P 500)... and then buy asset B that perfectly tracks an asset (say S&P 500). So you end up with the "same thing" at the end of the day, but got to harvest some losses. That said, I think there are some iffy legal situations here, and you run the risk of breaking the law here. https://www.investopedia.com/terms/r/robo-tax-loss-harvesting.asp https://www.investopedia.com/terms/r/robo-tax-loss-harvestin... https://www.sofi.com/learn/content/automated-tax-loss-harvesting/ https://www.sofi.com/learn/content/automated-tax-loss-harves...
- vineyardmike 5y agoTLH is real, but "sell yourself the same asset at a loss" sounds fishy to me. Because with TLH its not "the same asset" in that its not (a) the literal same item moved from one hand to the other. (b) its not the same item ticker (basically a day trade across accounts) (c) Its not buying/selling with yourself