Turning A Loss to a Gain

Now is the time of year to use the tax code to your advantage. As we all know BTC is treated as a commodity and not a security so the wash sale rule does not apply as it does with stocks. You can convert an unrealized loss to a realized loss by simply selling BTC and buying back immediately. This way you can use the realized loss to offset capital gains and also be able to deduct $3000 per year from income. As an example I buy 1 BTC at $40000 and it’s now $20000, meaning you have an unrealized loss of $20000. I can sell 1 BTC at $20000 and buy back at $20000 so now I have 1 BTC at $20000 (same as before) but $20000 cap loss that I can use to offset cap gains on anything including sale of a house

submitted by /u/FearlessTax3854
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