There may be a silver lining for crypto investors selling at huge losses during the recent market turmoil: a quirk in the tax code that lets people minimize what they’ll owe the government down the road.
Unlike stocks and bonds, cryptocurrencies aren’t subject to federal rules that bar people from claiming deductions if they sell an asset at a loss and then buy an identical or similar asset within 30 days before or after the sale. That provides a unique opportunity for people suffering steep losses to sell and reap future tax savings, then buy more virtual tokens at cheaper prices, according to crypto tax filing software firms.
