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TokenTax: Crypto Tax Loss Harvesting — 📉Save money on taxes. Harvest your cryptocurrency losses
TokenTax's newest product: The Tax Loss HarvestIng Dashboard.
Implement the tax strategy of your dreams by viewing all of your individual tax lots and working directly with our tax advisors to make sure you're maximizing your savings.
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Gerbz
Great job guys - my understanding is that losses can only be used to offset capital gains. After that only 3k worth of losses can be written off, with the remainder carried over to future years in chunks of 3k. Am i missing anything else? Can crypto losses be used to offset other types of income?
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@gerbz hey Greg - actually yes it can. If you qualify for "trader status" you can offset as much ordinary income as you have from W2's etc... even if your other job is unrelated to crypto or trading. The threshold for trader status is a bit complicated to figure out but many of our users probably qualify even some who were only actively trading for a few months
@gerbz For example -> if you made $100k from your day job as a Product designer, and lost $80k investing in crypto (realized losses, you must sell before the end of the year to realize the loss- not just hold it) -> you could reduce your net income to $20k for the year. Pretty amazing opportunity if you qualify, right?
@gerbz if you're not sure if you qualify for trader status you can talk to a CPA on our team who specializes in trader status - please feel free to come to the site and schedule time to speak with him.
But either way, there is no reason to not realize the loss now as they never expire and you can carry them forward forever blocking capital gains and ordinary income at a clip of $3k per year.
The idea here is that realizing the losses, and then re-entering the positions you have later, is a bit of a free lunch, because if crypto prices bounce back your holdings will be worth the same (assuming you've re-entered) but by then it will be too late to realize the losses. And as you pointed out as soon as you realize the losses they can be blocking your capital gains AND your ordinary income while you wait for the prices to increase.
Bottom line - no reason to wait to realize losses even if you don't have gains right now, those losses will eventually be used by you to reduce your tax bill
Hey ProductHunt!
It's with great please that I get to announce the latest installment of the TokenTax Product offering: The Tax Loss Harvesting Dashboard
This is a sentimental one for me too. A year to this date, I received an email from ProductHunt to let me know that TokenTax won the Grand Prize in the 2017 Global Product Hunt Hackathon. The team was 2 at that point and since then has grown to 12! Ever since that day, the velocity of our team has continued to increase and it makes me feel so alive! I just want to say thank you to Ryan and the rest of the Product Hunt team for affording this opportunity to build products that customer love.
We are offering a ProductHunt special for those that want to start harvesting their crypto losses now that the market is so low 😟
Also, please ask us any questions that you might have about crypto, taxes, and specifically how to implement a tax loss harvesting strategy for your 2018 tax year!
Best,
Alex & Zac
@milesalex Product looks interesting, would love to check it out. Do you have integrations with other exchanges outside of Coinbase + GDax?
I didn't know about Token Tax. Thank you for sharing your app. I'm just starting my trading career. Perhaps I'll choose to work with cryptocurrency. I like learning new materials. Here I even read a lot of interesting things about the principles of trading https://www.natlawreview.com/art.... It turns out that all crypto investors have to pay taxes on their activities. After finding your application and this thread, I realized that I should take cryptotrading more seriously. I always thought it was just passive income that no one would know about, while this job is also taxed.
Saved me a ton of time and money. Other tax filing services I looked at charge by the hour at a really high rate. With tokentax I got everything done in a matter of minutes with a concise and straightforward breakdown of capital gains vs income. This is really the best option for people using multiple exchanges (I've used about ten in the past year) and for altcoin traders especially. Highly recommended.
Pros:Very efficient.
Cons:None really when compared to the alternatives.
The ONLY tax accountinfo solution for crypto currency.
Pros:Nothing else like it!
Cons:None
I used to do programmatic trading and have used tokentax.us for the past two years to handle around 200,000 individual transactions. To be honest, I tried other sites first, but even at a few thousand transactions they started to burp and die very ungracefully -- sometimes by just ignoring huge random swaths of transactions without any feedback. My taxes payable looked great -- They just weren't at all based on reality... :-/
Not tokentax. The people (Alex and Zac) have been great, the software has been robust, they are as easy or even easier to upload data to than the two other places I tried, and my tax accountant is very (very...) happy to have one nicely formatted file with everything properly in its place rather than 200,000 transactions in a bunch of different formats. He even asked for the name of the service I was using and now recommends tokentax as well.
Ok I admit I haven't tried it yet - but from what I got from customer support before even signing up is far beyond anything I hoped for. I went for premium but did contemplate VIP since I've got a pretty big mess to tidy up. I have tried two other service-providers BTW, wont mention names but one is a local one in my country and it just didn't do it for me. the other is one of the big old ones. I have a good feeling about tokentax and will update my review or post another one when I'm done.