Some eyebrows were raised when Microstrategy sold a part of its Bitcoin holdings, even though the company then bought more. A tax loophole was the reason.
Sell at a loss then immediately repurchase
Crypto investors can reduce their capital gains tax in 2022 by selling their crypto assets at a loss and immediately repurchasing them, thanks to a regulatory distinction that crypto assets have.
This strategy was recently used by business intelligence firm MicroStrategy, which bought 2,395 bitcoin on Wednesday, sold a portion at a loss, and bought 810 bitcoin just two days later.
Crypto still an asset and not a security
Unlike other securities, the Internal Revenue Service (IRS) does not consider crypto to be a security, but rather an asset, which means that certain tax laws, such as the „wash rule,” do not apply to it. This allows investors to sell crypto at a net loss and buy it back instantly while still being able to claim the loss on their tax filings.
Other investors who sell secu
We współpracy z: https://cryptodaily.co.uk/2022/12/microstrategy-sold-its-bitcoin-for-good-reason
