Turkey leftovers, title clinching victories and tip-offs cause another “T-word” to surface — TAXES! Since the “tax season” is an inevitable element of life, TAX TALK returns to provide (hopefully) sage advice that may save you some dollars while causing you to grin (at times), groan or “go with — or without — the cash flow.”
The cryptocurrency television ads and other promotions put me a in a FOMO (fear of missing out) mode. So, I bought bitcoin earlier this year. Right now, the losses are about $7,000. Can you provide income tax advice to lessen the impact of these losses?
— SCC, email
Our grandparents were right when they told us something that was too good to be true probably was not going to happen. The cryptocurrency industry has taken major publicity and dollar body blows throughout 2022. When FTX declared bankruptcy a few weeks ago, the crypto currency market collapsed.
‘Why do we allow this stuff?’:Jamie Dimon says investing in crypto tokens is like buying ‘pet rocks’
The Internal Revenue Service treats cryptocurrency as a capital asset. That’s good news when gains are reported because long-term capital gains may qualify for a preferential tax rate. Generally, capital losses can only offset capital gains during the year. If you have any “winners” in your stock portfolio, we recommend you start to generate capital gains between now and the end of 2022.
You’ve got $7,000 of losses that can offset the capital gains. If there are no or not…
