Comment
Author: Admin | 2025-04-28
Crypto and you've made a capital loss, you won't pay Capital Gains Tax.But it's really important you keep a record of Bitcoin losses. Why?Because you can offset your Bitcoin losses against your Bitcoin gains to reduce your overall tax bill. In fact, some investors take this to the next level and strategically offset losses against gains to pay less tax. This is known as tax loss harvesting. You can also carry losses forward to offset against future gains.Each country has slightly different rules for offsetting Bitcoin losses against gains. But in short:US: There is no limit on how large a capital loss you can offset against capital gains. If your capital losses exceed your net capital gain, offset a maximum of $3,000 against ordinary income. You can carry losses forward indefinitely.UK: There is no limit on how large a capital loss you can offset against capital gains. If your capital losses exceed your tax free allowance, you can carry registered losses forward indefinitely.Australia: There is no limit on how large a capital loss you can offset against capital gains. You must offset all the capital losses you can before carrying them forward to future tax years. You can carry losses forward indefinitely.Canada: You can only offset half your capital losses as you only pay tax on half your capital gains. You can carry capital losses forward indefinitely.At the moment Bitcoin margin trading, Bitcoin futures, and other CFDs with Bitcoin are unregulated. So the specific tax treatment on it is pretty hazy and it will depend on where you live as well as the scale at which you're trading.If you're trading at a similar scale as a day trader - it's highly likely that this would be viewed as business activity and subjected to the relevant Business Income Tax.However, if you're
Add Comment