đ A loss in crypto â the end? Not quite. In some countries, itâs the beginning of a smart tax strategy.
At some point, every investor sees red on the screen. The crypto market isnât a beach walk â itâs sharp highs and sudden drops. But hereâs the twist:
In certain jurisdictions, losses can be monetized.
đșđž In the US, realized losses can actually work for you. You can deduct up to $3,000 per year from your income â and offset capital gains with no limit. Didnât use the full amount this year? Carry it forward. As long as it takes.
đŹđ§ In the UK, thereâs no cap on capital losses â as long as you report them to HMRC. Once registered, they quietly sit and reduce your future gains. A slow-burn strategy that pays off.
đšđŠ Canada allows losses to reduce capital gains tax. Only 50% of gains are taxable â and the same applies to losses. You can even carry losses backward and forward in time.
đŠđș Australia rewards patience: hold for over 12 months, and half the gain is tax-free. Losses? You can distribute them over future years, reducing pressure on your returns.
âïž Itâs not just about whether you lost â itâs about how you report it. Lawyers and tax pros can help turn red numbers into a strategic asset. Itâs not magic. Itâs the law.
đŻ In the Web3 age, itâs not just about winning â itâs about exiting smart.