Tax-loss harvesting is a strategy used by investors to reduce their taxable income by offsetting gains with losses. When an investor sells an asset that has lost value, they can claim that loss on their tax return. This reduces the amount of taxable profit from other investments. In practice, an investor might sell a cryptocurrency that has decreased in price. The loss from this sale can then be used to offset any gains made from selling other cryptocurrencies or assets. This can result in a lower overall tax liability.After the sale, investors often look to reinvest in the market. To avoid the “wash sale” rule, which disallows tax relief if the same asset is repurchased quickly, they may choose to invest in similar but not identical cryptocurrencies. This allows them to maintain market exposure while still reaping the tax benefits of their losses. Overall, tax-loss harvesting helps manage investment performance and tax responsibility efficiently.
Bank of Japan Weighs Additional Rate Hikes as Inflation Persists
The Bank of Japan will continue to raise interest rates if economic and price trends progress as expected, Deputy Governor