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Author: Admin | 2025-04-28
Harvesting AustriaWhat types of gains can be offset by crypto losses?Crypto losses are classified as capital losses, which means they can be used to offset various types of capital gains, depending on the crypto tax laws in each country. Offsetting Gains from Other CryptocurrenciesCrypto-to-crypto trades are generally considered taxable events in many jurisdictions. This means that if you sell Bitcoin at a loss, this loss can be used to offset gains from other cryptocurrencies, such as Ethereum or Solana. So if you’ve made a 2,000€ gain from trading Ethereum but incurred a 2,000€ loss from Bitcoin, the loss would cancel out the gain, resulting in no capital gains tax for those transactions.Offsetting Gains from Stocks and EquitiesIn many countries, capital losses from crypto can be used to offset gains from other investments, such as stocks, bonds, or mutual funds.If you had a 5,000€ gain from selling stock in a tech company but also had a 5,000€ loss from crypto investments, you could apply the crypto loss to offset the stock gain, effectively eliminating any taxable gain for those investments.Offsetting Short-Term vs. Long-Term GainsIn countries that differentiate between short-term and long-term capital gains, crypto losses can generally only offset gains of the same category. If you incur a short-term loss on a crypto asset, this loss can only offset short-term crypto gains. Similarly, a long-term loss from crypto (held for more than a year) can generally only offset long-term crypto gains.Using Crypto Losses to Offset IncomeIn some jurisdictions, once all capital gains have been offset, any remaining losses can reduce other forms of income. For example, in the United States, up to 3,000$ of unused capital losses can be used to offset ordinary income, such as wages or business income. If you realize a 4,000$ crypto loss and have no other
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