*I understand any replies do not constitute tax advice and that I should seek the council of a tax professional*, but:
What would you do?
Question: I made a simple calculator that takes in my buy history for bitcoin and tells me how many I should sell in order to maximize my losses for tax write-offs against other capital gains. I currently don't have much in capital gains for this year but I have an opportunity to take a large write-off if I sell some bitcoin and buy it back (wash trade).
My question is: what would you guys do?
My thoughts are, A) unless I take profits in something else, I would only be able to write off $3k/year against earned income (and likely won't have earned income in future years),
B) since it's such a large loss, I'm not sure if it's worth risking triggering a potential audlt (even though everything is above board, the process is not fun),
and C) I don't really want to miss out on this "free money" in the form of a deduction from the government
(throwaway for obvious reasons)
Thoughts?
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