Are Wash Sales Coming To Cryptocurrency!?
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- Опубліковано 10 лип 2024
- Are Wash Sales Coming To Cryptocurrency?!
The House Ways and Means Committee is proposing to shut down one of the most lucrative crypto tax loopholes.
The bill would apply the wash sale rule to digital assets, according to a summary report by the committee, treating them like stocks. The rule forces an investor to wait 30 days between the selling of a security and the repurchasing of it, when a tax deduction is involved.
waysandmeans.house.gov/sites/...
Should the proposal pass, taxpayers have until Dec. 31, to take full advantage of the existing loophole, which allows crypto investors to sell coins at a loss for tax purposes and immediately buy them back.
In this video we talk about the potential impacts
Time Stamps
0:00 Intro
1:50 Draft Bill Language
2:38 Tax Loss Harvesting
3:20 What Is A Wash Sale
4:45 How Will Wash Sales Look in Crypto
10:08 How To Prepare
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DISCLAIMER: I am not a financial adviser but fortunately I am a CPA :). These videos are for educational and entertainment purposes only and should not be taken as "individualized" tax advice. Should you need tax solutions I highly recommend consulting with a professional or our CPA Firm. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
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Do you provide tax services in the state of Georgia or just in Florida?
Yes!!! Build America up legooooo!
Is it to late in the year to start an LLC?
Subbed after watching you with Humbled Trader. Looking forward to watching your content.
My man 🙌.
Great video sir thank you. I know you mentioned that you were going to do an updated crypto video so i cannot wait for that. Just would like to know if I can apply for day trader status specifically trading crypto only. Would be great if that was addressed in next video among the other crypto related topics. I subbed your channel. Great stuff fam. The crypto space needs you!
Let's talk now 👆👆
I appreciate your wisdom man! Good information. I gotta ask you, how would Crypto Passive income be reported as, for example Mining, Minting, Masternodes, Staking? There are costs to setting them up and maintenance fees to support the crypto network, can we write these off and would a LLC help? I’ll help spread this as much as possible, thanks again! 🙏🏽
Each of those have different nuances.. ie mining operations are reported on schedule C based on fmv of coin minted.. if this is a business the expenses can be deducted against it. Check my vid on Bitcoin taxes
I clicked on this video to find out what a "wash sale" is.
Let's talk now 👆👆
Good content. Educational wash sale material is a bit rare. I think they will get it done. Seeing commodities on there has me wondering if they’re coming after futures too. What you think?
Thanks! what’s interest about commodities is they currently fall under section 1256 and are already marked to market. So if the changes happens commodity based futures would then be subject to the wash sale as they did not identify index options
@@BrianRiveraCPA ah good point. So oil, gold futures could be subject to wash sales but Equity futures maybe still off the hook? Maybe you can include commodity futures into your software at some point too? May not be popular enough though. Not many guys are buying and selling soybeans. I’ll stay tuned to see what happens. Thanks for all the information.
Hi Brian, can you recommend a good app I use to see my gains and possible wash sales so I know where I am standing before the end of the year?
For crypto there isn’t anything on the market (yet) as it’s not tax law. I should have something released q1 2022.
Depending on how often you trade and volume, you could track trades yourself via an Excel spreadsheet. You can calculate cost basis and compare against proceeds from sales and see where you stand at any given point. However, this conversation is much deeper as one must know how the coins are being sold (ie First In First Out: FIFO) , LIFO, or selective as that will greatly impact whether sold coins trigger a wash (if law is implemented).
@@Mindset4Excellence Great point. Over time i've seen tax payers try and switch methods over tax periods to reduce tax liabilities. In the end, the accounting method you choose will not change your total capital gains. It only changes the timing of your capital gains. Minimization can help prioritize long term gains over short term gains.
Hey I have some questions is there anyway I could contact you and get some advice before I start day trading
Let's talk now 👆👆
If the crypto gets treated like equities and options the would those same trades count towards the BEHAVE requirements?
they currently count towards the behave requirement. it would then open the door for crypto traders to use 475 M2M
Sounds like the Dems and the government need to get on the Dave Ramsey Plan lol
😂
hey do you do consulations? do you perhaps have an email to contact you on?
Consults will open up in may - link in my bio has a reservation list
@@BrianRiveraCPA hey I don't see any link. and I need an advise, asap, its time sensitive. like a 10 min consultation will help
@@nadialemoss4019 For help & consultation ⬆️⬆️🔝🔝
Great video im a new subscriber can you make a video about trading Crypto using an LLC and then electing S-Corp status in order to avoid self employment taxes if possible would that work?? @BrianRivera