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RE: Reddit User Says He Owes the IRS $50,000 in Taxes Due To Crypto Activities
Won't he also be able to write off the $80,000 in losses from the values of his alt-coins falling?
Won't he also be able to write off the $80,000 in losses from the values of his alt-coins falling?
He can't write this year's losses off of last year's taxes. And unless he makes enough trades to be considered a day trader, he is an investor - with a 3000/year cap on capital losses, with any extra rolling over to the following year.
So he has a tax credit for the $80,000 for any potential gains in the future?
That he can claim something like a max of 3k a year from, unless he's a day trader (5-7 trades a week is not sufficient to be considered a day trader by the IRS).
@ashaman True. He cannot write off the bill. It's burdening though.
@money-dreamer That's not possible. He will be required to pay. So shocking though.
With huge amounts of interest too because it don't look like he can afford to pay it.
@money-dreamer Interests may not be high, but most people are new to managing the currency.