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Can Bitcoin crash reap us tax benefits?

A 50% drop is seen in cryptocurrencies like bitcoin & ethereum due to volatile trading. This can be used as a tax saving strategy. Investors can sell crypto for a loss using it to reduce capital gains on winning investments. They can then quickly buy back crypto again to reap the benefits on a subsequent rise in price. The former benefit can be used for stocks or other securities. While the latter cannot be considered as a benefit as the investors cannot buy the same security within a period of 30 days. This is because cryptocurrencies are not considered as securities but property. The downside of cryptocurrencies can thus be easily used in manipulating tax benefit.

Source: CNBC

 

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