How Crypto Losses Could Result in Tax Benefits

Even if you suffered losses on your crypto investments this year, there’s still some good news.

Michelle O’Connor is VP of Marketing at TaxBit.

The U.S. Internal Revenue Service allows investors to claim deductions on cryptocurrency losses that can lessen tax liabilities or even result in a tax refund. There are also investment strategies you can use throughout the year to maximize your losses and get the most out of your crypto investments.

Offset capital gains

Cryptocurrency losses can be used to offset capital gains. A capital gain occurs when you sell, transfer or otherwise dispose of your crypto for a profit.