Bitcoin and the Law
How regulatory status varies and what compliance typically involves for holders.
Bitcoin Taxes & Estate Planning
Tax Loss Harvesting
Using realized losses to offset gains within applicable tax rules.
Overview
If Bitcoin you sell is worth less than your cost basis, you may realize a capital loss. Depending on local law, losses can offset gains from other sales in the same period or carry forward. Wash-sale and holding-period rules vary—confirm what applies where you file.
Harvesting is a planning tool, not a reason to change long-term conviction. Document trades contemporaneously and discuss strategy with a tax advisor before year-end.
How harvesting works
Selling below basis realizes a capital loss you may offset against gains, subject to local limits and carryforwards.
Some investors harvest without exiting long-term thesis by repurchasing after required waiting periods.
Rules and constraints
Wash-sale rules differ by country and asset class. Confirm with a professional before assuming equivalence to stocks.
Document intent and timestamps contemporaneously. Tax benefit should not override investment discipline.
Planning calendar
Year-end reviews compare unrealized positions to realized gains. Deliberate timing can smooth outcomes within legal bounds.
Coordinate with estate plans—selling for tax reasons moves coins and may affect wallet organization heirs follow.
