Forbes

OWN UP TO YOUR CRYPTO TRADING HABIT

- —W.B.

The new Schedule 1 of the IRS’ 1040 form asks whether you had any transactio­ns in virtual currencies last year, so forgetting to report sales is no longer an option for people who want to avoid jail. But being honest may in fact save you money: As with other kinds of property, capital-gains tax on a cryptocurr­ency investment is due only when you sell. Selling just your losing positions generates capital losses that can be put to use absorbing gains elsewhere (such as from stocks and bonds). Crypto, moreover, is exempt from the wash-sale rule that limits capital loss deductions for securities positions that are quickly reestablis­hed.

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