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Wash sale Tax loss harvesting question for Crypto 2023

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by COINS NEWS 105 Views

Hi all,

Seeking feedback from those in the know for US based investor. I've been buying ETH for years via CB and have not sold, primarily just buy it and move it into my hw wallet. I did leave a portion of it on CB to stake for a while but ultimately just moved it to my wallet as too much risk on exchanges.

I'm down overall. While I got in early and some if it was bought at low cost, I dumped some in when it was way high as well. CB total returns show in the red. I was also thinking about reducing my ETH exposure.

My thought was to sell it all for simplicity, claim the capital loss on 2023 taxes then buy back in what amount I'd like to retain for the long haul. That said, I don't want any unexpected tax backlash from this and wondering if this would be an OK move or if I'll be hit with some kind of wash sale issue. I have some from 2017 @ ~$337ea all the way through throwing some lumps in for example Dec 2021 when it was ~$3,988.

Or, I just keep sitting on it... but would sure be nice to have that tax loss harvest to offset some other gains from my other side hustle businesses that did OK this year.

Any feedback appreciated from those adept with US based cypto tax law.

Thank you

submitted by /u/AdAntique5099
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