Tax strategy · 7 min

Tax-loss harvesting with crypto

Sell underwater positions to offset gains — with timing, basis, and wash-sale concepts explained clearly.

Disclaimer: Educational content only — not tax, legal, or investment advice. Consult a qualified CPA before filing.

Tax-loss harvesting means selling positions that are worth less than your cost basis to realize capital losses. Those losses can offset capital gains from other crypto (or other investments, subject to tax rules) on your return — potentially reducing tax due before the year ends.

Crypto is not stocks — but the idea rhymes

Wash-sale rules that apply to securities do not currently mirror crypto the same way, yet Congress and regulators evolve rules frequently. Treat harvesting as a planning conversation with your CPA, not a automatic year-end button.

Selling at a loss crystallizes the deduction — timing matters for the tax year

How CryptoTax8949 supports harvesting

Unrealized gain/loss views by asset and exchange
Lot-level detail so you know which positions are underwater
Scenario planning before you place disposal trades

Year-end checklist

Reconcile all imports and transfers before harvesting trades
Identify loss candidates with accurate basis — not exchange averages
Execute trades before the calendar year closes (for calendar-year filers)
Regenerate Form 8949 exports after final trades settle