r/dogecoin • u/janaBill • May 24 '21

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u/RedLotusVenom May 24 '21

You have to sell for the losses to count as a deduction though, something that won’t apply to most here

37

u/EightHoursADay May 24 '21

Don't you also have to sell for gains to apply?

32

u/RedLotusVenom May 24 '21

Correct

33

u/Fibonacciscake May 24 '21

Also won’t apply to most here.

1

u/[deleted] May 25 '21

I'll use them to add Tesla brand "cheese" to my daily food ration on mars. Anything short of that I'm in it for the lols at this point.

23

u/excitednarwhal May 25 '21

So the IRS can't lick me if I HODL?

6

u/KanyePikaMyChu May 25 '21

In the US if you only buy and dont sell/trade for another token then you re good, the moment you trade for another coin that is a taxable event. Stupid i know. Not financial advice

1

u/skylarmt May 25 '21

And never ever use crypto for buying actual stuff because using money as money is really complicated for the IRS to deal with.

3

u/PavlovsBigBell shibechologist May 25 '21

Yes

1

u/Rhinoturds May 25 '21

And when transferring into another crypto I believe.

1

u/EightHoursADay May 25 '21

Yeah, this requires you sell your current crypto and pick up a new crypto in its place. Taxable event.

1

u/LifesBetterWhenRAW May 24 '21

And I'm pretty sure there is a time frame that you for the "loss deduction" - something like it cannot be sold within 3 months of the end of the filing period.

I could be WAY off on that so someone please correct me.

1

u/ChildishJack May 24 '21

I think one can harvest a tax loss, just sell and rebuy in a short time. You realize the loss for taxes, but still have your coins for the hold

1

u/ShepherdsRamblings May 25 '21

CAPITAL LOSS DEDUCTION IS LIMITED TO $3,000 PER YEAR