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The Best Bitcoin Tax Loophole- CRYPTO TAX STRATEGY - YouTube
Channel: Xena Kai Finance Videos
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in this video i am going to go over how
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you could make money off of your crypto
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losses no this is not financial advice i
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am not a financial advisor but i did
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find this article on forbes stating how
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you could legally
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lower your taxes and save money on taxes
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while keeping your positions in bitcoin
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ethereum dogecoin whatever
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cryptocurrencies you own
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so keep watching to learn more bitcoin
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went from over 60 000
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all the way down to 29 000
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and i know a lot of you bought when it
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was high
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i know i did sucks and i know this tax
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loophole is going to help out a lot of
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you
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so keep watching and if you're new here
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hi my name is xena i make
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videos on personal finance but only a
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small percentage of my viewers are
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actually subscribed
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so hit subscribe and the notification
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down below
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it's free for you to do and you could
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always unsubscribe later
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so here is the forbes article and they
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claim that there's some type of tax
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loophole that every crypto trader should
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know and this is 100
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completely legal according to this
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forbes article
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please i am not a financial advisor
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please consult your cpa
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i'm just spreading information that i
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found that i thought was
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honestly quite amusing basically what
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this article states is that since
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cryptocurrencies such as you know
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bitcoin ethereum
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dogecoin are treated as property
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wash sales rule which is applicable to
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stocks are not applicable to
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cryptocurrency
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now what exactly is a wash sale rule
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i honestly had no idea until i read this
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article
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a watch sale occurs when you sell
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security at a
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loss and then you purchase the same type
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of security
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within the next 30 days the wash sale
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rule
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only applies to stocks and securities
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and the reason they have this
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is to discourage investors from making
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up
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fake losses and deducting all those
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losses
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from their taxes so imagine you had
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a hundred thousand dollars worth of
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tesla stock
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and tesla stock dip because elon musk
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keeps tweeting and now you only have
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sixty thousand dollars worth of tesla
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stock
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you're mad at elon musk for crashing the
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crypto market
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so you sell your tesla stock at a loss
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of 40 000 and then the very next day
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elon musk pumps doge coin and then
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you're back
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and you're rich again and you love elon
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musk again and so you buy
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tesla stock at 60 000 again
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and for ease of example let's just say
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that the tesla stock was
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at same price as when you sold it the
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day before
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well you could no longer claim the
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capital loss
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of 40 000 because of the wash sale rule
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because you bought tesla again within
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the next
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30 days you know you can't claim the 40
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000
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loss again because of the wash sale rule
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but that only applies
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to stocks and securities however crypto
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on the other hand
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is not a stock or security in contrast
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trading cryptocurrencies which act just
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like stocks but under the tax
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treatment of property generate a much
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better
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tax benefit because of this they are
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not subject to wash sale rules just like
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how
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stocks are so here's an example let's
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say you bought
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one bitcoin at 60 000
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and lately the market has crashed and
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bitcoin is hovering around the price of
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35 000 you sold your bitcoin
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for 35 000 and then you bought a bitcoin
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for 35 000 so you still have one bitcoin
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and you spent about the same amount of
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money
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minus the transaction fees well 60 000
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minus 35 000 equals 25
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000 so you could report
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a capital loss on your taxes
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of 25 000
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because you sold your one bitcoin
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because bitcoin is taxed as property and
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not as a stock or
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security the wash sale rule does not
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apply
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so you could claim the capital loss
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of 25 000 i am not a financial advisor
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this is
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not financial advice and i am not a cpa
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i am just a random girl on youtube who
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found this forbes article and i thought
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about sharing it with you guys because
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it might help you a lot of people i know
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bought bitcoin
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at when it was at sixty thousand dollars
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and right now
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it's been chilling at thirty five
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thousand dollars so if that
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is you or if you know someone like that
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send them this form article
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and tell them to talk to their cpa and
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see whether or not this will apply in
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their situation
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and hey maybe if they sell whatever
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bitcoin they have and buy it at the same
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price
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maybe they'll save money on taxes this
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year if this video was helpful for you
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please subscribe to my channel hit the
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notification bell i'd really appreciate
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it
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leave a like on it and comment down
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below okay
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comment i like talking to you guys and
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while you're at it make sure to watch
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this video next i'm sure you'll love it
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and with that thanks for watching and i
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will see you guys
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in this video bye
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