topic Re: crypto tax loss harvesting in Investors & landlords

crypto tax loss harvesting

1548432s — Thu, 20 Nov 2025 22:40:56 GMT

Hello community.

I was familiar with the term tax loss harvesting, but it seems like it is a strategy that I will need to implement this year. Crypto does not have a wash sale rule unlike stocks.

How does it work with realized loss on crypto vs ordinary income from W2 or 1099?

Say for example:

You made $300,000 W-2 pre-tax income, but your crypto realized losses are $50,000.

Does tax loss harvesting mean, you can offset your regular taxable income?

Re: crypto tax loss harvesting

Bsch4477 — Fri, 21 Nov 2025 00:41:44 GMT

Your loss is first deducted from any capital gains. Only $3,000 of the remaining loss is deducted from your income. The rest is carried over to future years until it is all used up.

Re: crypto tax loss harvesting

rjs — Fri, 21 Nov 2025 01:13:31 GMT

Tax loss harvesting means selling investments that have a loss in order to offset gains from selling other investments. It's still a capital loss, and only $3,000 of capital loss can be used to offset regular income in the current year. It makes no difference whether the capital loss is from crypto or other investments. The only advantage of using losses from crypto is that, as you said, none of the loss will be disallowed because of wash sales.