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RE: How to pay zero crypto taxes this year.

in LeoFinance4 months ago

Great post. This is what happens when I'm up late. I start spilling secrets :)

If I recall correctly, in order to declare a loss with stocks or commodities you must keep that money out of the market for at least 3 months.

For US purposes, a wash sale is buying a stock back within 30 days of sale.

Technically this could apply even if it's a different stock/ETF/whatever. Like if you sell one S&P 500 ETF and buy another, those are "substantially similar."

In a wash sale, the sale effectively never happens. Buy stock XYZ for 100, sell it for 70, buy it back within 30 days for 65, sell it for 120. Your taxable trade is 100 -> 120. The middle part "never happened."

Hey I see you have all this Hive Power here,

I've thought a lot about this and came to the same conclusion. HP isn't yours until you power down. Liquid rewards that are paid out are taxable and are ordinary income rather than capital gains.

Posted Using LeoFinance Beta


Thanks for the comment I really appreciate it coming from someone who has a lot of experience in this area.