фото показано с : zycrypto.com

There is a massive window of opportunity for Bitcoin investors as the price of the asset falls below $50K.Investors are taking advantage of the wash sale rule exemption that is applicable to cryptocurrencies before it ends by the start of 2022.Crypto prices are entering “winter” making it attractive for quick business before the year comes to a close.

Cryptocurrency investors have a rare chance to take advantage of a tax loophole. Only two weeks left till the window of opportunity closes for investors.

Robert Frank, CNBC’s Wealth Editor told viewers that time is running out for cryptocurrency investors to take advantage of the tax loophole that is coming to end. The opportunity is an exemption of the Wash Sale rule which savvy investors are exploiting to offset their tax liabilities. Under the Wash Sale rule, investors are required to wait at least 30 days before repurchasing a particular security for tax losses but crypto investors are not inhibited by such a rule.

“If you bought Bitcoin at $65,000 and you sold it at $47,000, you could use the $18,000 loss to offset any gains and immediately buy it back to stay invested in the market,” explained Frank.

Cryptocurrency prices have taken a big hit in recent weeks as the market cools after nearly reaching $3 trillion in market capitalization. Presently, the global cryptocurrency market capitalization is at $2.23 trillion as it reacts to macroeconomic sentiments like the outbreak of the Omicron variant. Bitcoin, the asset with the largest market cap trades at $47,846 and has reached a low of $46,955 within the last 30 days.

The losses in the cryptocurrency space will be important in offsetting the losses of investors in other asset classes. Investors will have to act fast because a law coming into effect contains a clause that will eliminate the wash rule exemption for cryptocurrencies. Analysts advise investors to take advantage of the opportunity ahead of the implementation of the new law in 2022.

Beginning from January 1st, 2022, cryptocurrency exchanges like Coinbase and Kraken are to report details of customer holdings to the IRS. Exchanges will be required to file the name, address, and contact details of customers, the gross proceeds from the sale of digital assets, and the long and short-term capital gains and losses.

The reason is the definition of the term broker in the Infrastructural Bill to include any person “any person who for consideration is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”

The definition has been criticized as being too broad and could potentially include cryptocurrency miners and other entities that do not provide brokerage services in the traditional meaning of the word.

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