I think this is a no, but wondering as I've yet to sell any of my hekd crypto..(USA)
if you sell crypto and will owe long term tax (example owe $2000) if you buy crypto that same year that equals the tax owed($2000), do they offset each other, therefore no tax owed?
Guessing this doesn't work only thing that might is buying crypto that totals what is sold?
Crypto long term tax owed if buy crypto equivalent to value owed?
byu/jimlaman8c intax
Posted by jimlaman8c
2 Comments
No, in several ways.
One, buying an asset does not reduce your taxable income.
Second, though, you are talkinga bout a 1000.00 tax bill. Even 1000.00 of actual losses or deductions won’t offset a 1000.00 tax bill. A 1.00 of deductions do not reduce taxes by 1.00, they reduce taxable income by 1.00. It’s important to understand this, or else some people think that it’s fine to lose money investing, as they “get it all back as a tax deduction” thinking the IRS will reduce their taxes dollar for dollar the amount they lost!
No. Only real estate tax-free like-kind exchanges basically only apply to real estate, and even that is limited.