{"id":4472,"date":"2024-12-19T13:01:31","date_gmt":"2024-12-19T13:01:31","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=4472"},"modified":"2024-12-19T13:01:31","modified_gmt":"2024-12-19T13:01:31","slug":"how-crypto-losses-can-be-used-to-offset-your-2024-tax-bill","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=4472","title":{"rendered":"How Crypto Losses Can be Used to Offset Your 2024 Tax Bill"},"content":{"rendered":"
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Cryptocurrencies are going through a very good period right now, and some people are likely to walk away with a nice return on their investment as 2024 draws to a close. But this is also good news for the IRS when it comes time for your next tax bill.<\/p>\n

When it comes to keeping your tax bill as low as possible, however, crypto losses<\/em> can also be your friend. You can use them to offset profits you made elsewhere in your crypto portfolio. With good times potentially ahead for crypto coins like Solaxy ($SOLX)<\/a>, your tax position is something you should be looking at sooner rather than later.<\/p>\n

Crypto Profits Are Taxable Profits<\/h2>\n

Meme coins are in the ascendant right now, with many of them \u2013 Crypto All-Stars ($STARS), Wall Street Pepe ($WEPE), and CatSlap ($SLAP), to name a few \u2013 promising high staking yields and higher prices. As investors take advantage of the bullish markets, it can be hard to forget that a percentage of any profits legally need to go to the government.<\/p>\n

The IRS is making big changes to the rules starting on January 1st, so unless you do a bit of advance planning, you could find yourself handing over more of your crypto wins to Uncle Sam than you\u2019d hoped for. Thinking ahead to your next one or two tax bills, therefore, makes sense, including how to offset them with your losses.<\/p>\n

Of course, we\u2019re not lawyers or accountants, so we can\u2019t give tax advice. We can give you some broad strokes hints, but you should always double-check everything we say with your accountant. Everyone\u2019s tax liabilities are different, so what applies to some people won\u2019t necessarily apply to others.<\/p>\n

So When Does Crypto Become Taxable?<\/h2>\n

\"American<\/p>\n

It helps to start by defining what the IRS considers to be taxable when it comes to crypto. According to this Forbes article<\/a>, you\u2019ll need to pay tax on your crypto gains when you\u2019re:<\/p>\n