{"id":19484,"date":"2023-02-04T10:19:54","date_gmt":"2023-02-04T18:19:54","guid":{"rendered":"https:\/\/coinnetworknews.com\/tax-strategies-allow-crypto-investors-to-offset-losses\/"},"modified":"2023-02-04T10:19:54","modified_gmt":"2023-02-04T18:19:54","slug":"tax-strategies-allow-crypto-investors-to-offset-losses","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/tax-strategies-allow-crypto-investors-to-offset-losses\/","title":{"rendered":"Tax strategies allow crypto investors to offset losses"},"content":{"rendered":"
2022 was tough for the crypto market. A recent report published by security services platform Immunefi found that the crypto industry lost a total of $3.9 billion<\/a> in 2022.\u00a0<\/p>\n Detrimental losses such as these are often concerning for crypto investors, yet there may be a silver lining behind decreasing assets for investors reporting crypto on their taxes<\/a>. <\/p>\n Lisa Greene-Lewis, a certified public accountant at TurboTax, told Cointelegraph that while crypto investors made huge gains in 2021, this changed drastically in 2022. \u201cWe have seen a crypto winter occur, and TurboTax wants to help investors cope with their losses,\u201d she said. According to Greene-Lewis, tax-loss harvesting<\/a> is the most important notion to keep in mind when it comes to saving money when filing taxes. She said: <\/p>\n \u201cWith crypto, you can offset gains with losses. Any leftover losses can be offset up to $3,000 against ordinary income like wages. Losses exceeding $3,000 can be carried forward to the next tax year.\u201d<\/p><\/blockquote>\n Greene-Lewis explained that as new, young investors enter the crypto market, awareness around tax-loss harvesting is becoming more critical. According<\/a> to a Pew Research Center survey cited in TurboTax\u2019s latest tax trend report, 16% of Americans have invested in, traded or used cryptocurrency. Individuals between the ages of 25 and 34 are more likely to have cryptocurrency sales transactions than any other age group. \u201cMany of these individuals are unaware of tax-loss harvesting,\u201d Greene-Lewis said.<\/p>\n