Bitcoin's price slump prompts experts to advise tax-loss harvesting to cut taxes.

With Bitcoin's price drop, experts recommend "tax-loss harvesting" to offset profitable investments by selling declining assets. This strategy allows investors to reduce their tax bill by up to $3,000 per year and carry excess losses into future years. Currently, a crypto-specific loophole avoids the wash sale rule, but this may be eliminated due to ongoing tax negotiations in Congress. Experts advise considering your investment goals and timeline before implementing this strategy.

February 28, 2025
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