The One Crypto Tax Strategy to Know!

Because cryptocurrencies are classified as “property” rather than as securities, the wash-sale rule does not apply if you sell a cryptocurrency holding for a loss and acquire the same cryptocurrency before or after the loss sale.You just have a garden-variety short-term or long-term capital loss depending on your holding period. No wash-sale rule worries.This favorable federal income tax treatment is consistent with the long-standing treatment of foreign currency losses.That’s a good thing, because folks who actively trade cryptocurrencies know that prices are volatile. And this volatility gives you two opportunities: profits on the upswings loss harvesting on the downswings