Tax-Loss Harvesting
Identify opportunities to offset gains with strategic losses
How Tax-Loss Harvesting Works
Sell assets at a loss to offset capital gains from other investments. You can deduct up to $3,000 in net losses against ordinary income annually, with excess losses carried forward to future years.
-$19,750
4 positions
-$18,000
2 opportunities
$2,700
At 1500.00% rate
1
Harvesting Opportunities
Solana
150 SOL
Cost Basis
$32,500
Current Value
$18,750
-$13,750
-4230.77%
Tax Savings
$2,063
Polygon
5000 MATIC
Cost Basis
$8,750
Current Value
$4,500
-$4,250
-4857.14%
Tax Savings
$638
Chainlink
200 LINK
Cost Basis
$4,200
Current Value
$2,800
-$1,400
-3333.33%
Tax Savings
$210
Uniswap
100 UNI
Cost Basis
$1,200
Current Value
$850
-$350
-2916.67%
Tax Savings
$53
Year-End Tax Planning
Tax-loss harvesting is most effective when done before December 31st to offset gains in the current tax year. Remember that cryptocurrency transactions must settle by year-end to count toward this year's taxes.
Disclaimer: Tax-loss harvesting strategies should be evaluated carefully with a tax professional. Wash sale rules and other regulations may affect your ability to claim losses.