Portfolio in the red? How tax-loss harvesting can help stem the pain

2022.06.17 05:05

Portfolio in the red? How tax-loss harvesting can help stem the pain

Crypto investors — particularly those that bought in toward the top of the market in 2021 — may be able to find some salvation through a tax-saving strategy called “loss harvesting” according to Koinly’s head of tax.

Koinly is one of the most widely-used crypto tax accounting firms online. Head of tax Danny Talwar told Cointelegraph that while most retail investors are aware of their obligation to pay capital gain taxes (CGT) when they make profits, many are unaware that the opposite holds true and that losses can be used to reduce their overall tax bill by offsetting capital gains elsewhere.

Loss harvesting

Will it work?

Tax authorities playing catch up

Source