So I’m curious how filing my taxes for cryptos work as I seem to have a pretty large long term loss for this specific year with a minor short term gain.
Would this result in the short term gains being added to the long term gains netting me a total of $217k loss?
If this is the case and I have profits from prior years will this amount reflect on 2017, 2018 as well?
Say for example I have a 20k gain in 2017 and a 40k gain in 2018 would I then have a tax right off of 147k?
Here’s an overview of how cryptocurrency taxes work.
Specifically, what you’ll do is net all your short term capital gains/losses across all asset classes (e.g. crypto, stocks, etc.) and same for long term capital gains/losses across all asset classes. Then you will sum net short term capital gain/loss (across assets) and net long term capital gain/loss (across assets). If the total amount is still negative (loss), you can offset a portion of ordinary income (~$3K) and roll over the rest of the net loss to future tax years. You can do this for each tax year, and roll forward losses (but not backward, and not gains).
Say for example I have a 20k gain in 2017 and a 40k gain in 2018 would I then have a tax write off of 147k?
In this example, you would capital gains tax on $20K of capital gains in 2017, on $40K of capital gains in 2018, and in 2019 you would offset your income by a few thousand and roll over the remaining $140K+ loss to 2020. Then in 2020, any gains could be offset by this net amount rolled over.
Note: we hid your screenshot for privacy reasons (forum is public).
Is there anyway for me to go in and verify the long term losses are correct/accurate as I’m not sure if the long term loss I have in 2019 is correct, it just seems like a large amount and I don’t want to file something incorrect and have the IRS come after me over it.
You can check the transaction history and capital gains reports from the tax center to see transaction by transaction what the gain amount is and which lot it is pulling from (date acquired and date sold). If you’d like us to take a look for you, please feel free to send us permission to take a look at your CoinTracker account to feedback [at] cointracker.io (you can enable debug permission in settings).
I have enabled the debug permission in my account.
Great, just drop us a note at the email above and we’ll circle back with you
Okay, I emailed you there.