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Honest question: why not? I don't really understand the nuance of taxes. I just use a tax app and answer the questions.
by recursive 4y ago
Honest question: why not? I don't really understand the nuance of taxes. I just use a tax app and answer the questions.
- UncleMeat 4y agoIn the US, capital losses can offset capital gains to arbitrarily large numbers, but only $3,000 of capital losses can offset ordinary income. So if you lose $3M in one year and happen to have $3M in other capital gains then hooray - they offset and you pay no taxes on them. But if you lose $3M in one year and made $300k in income, you are still paying income tax on everything minus $3,000. You get to keep carrying it over so you can apply $3,000 every year - but if you've got losses in the millions they'll never be exhausted in this manner.
- qbasic_forever 4y agoBut if all of your losses are in crypto coins and not USD it's moot and you can't claim a loss on anything. Not until you convert to cash, and even then I'm not entirely sure it's clear cut.