Don't Forget to Claim Crypto Losses on Your Taxes
In this clip from "The Future of Fintech" on Motley Fool Live, recorded on Feb. 10, Motley Fool contributors Matt Frankel and Jason Hall talk about what investors need to account for and claim with their cryptocurrency gains and losses and discuss the headaches it can create when it comes to accounting.
Matt Frankel: Can you take a loss on crypto? Yes, you absolutely can. If you spend $2,000 on Bitcoin (CRYPTO: BTC) and you sell it for $1,000, you can absolutely take that loss to the extent that you're allowed to do so. Generally, capital losses are used to first offset capital gains at the same time. If that is a short-term capital loss and you have short-term capital gains, you can use it to cancel it out. I think the annual limit is still beyond offsetting gains. I think the annual limit is still $3,000 that you can use capital losses to offset each year up to $3,000 of loss and then anything above that, you can carry it over to the next year. But yes, if you bought Bitcoin at the peak, for example, and sold it very recently toward the end of 2021 at a loss, you can absolutely use those losses against other gains or, in some cases, against other income.
Source Fool.com
