Crypto Tax Harvest Loss Calculator
Calculate how much you can save through crypto tax-loss harvesting. See optimal loss utilization and total tax savings.
Total gains from crypto sold this tax year
Losses from assets held < 1 year
Losses from assets held > 1 year
Your marginal federal tax rate
Your state income tax rate (0 if none)
Your tax-loss harvesting objective
What is tax-loss harvesting in crypto?
Tax-loss harvesting involves selling cryptocurrencies at a loss to offset capital gains and reduce your tax bill. The IRS allows you to deduct up to $3,000 in net losses against ordinary income per year, and any remaining losses carry forward to future years. This strategy is especially powerful in volatile crypto markets where assets frequently drop 20-50% or more, allowing you to lock in substantial deductions while maintaining your overall market exposure.
How does the wash sale rule apply to crypto?
As of 2024-2026, the IRS wash sale rule does NOT apply to cryptocurrency. This means you can sell a crypto position at a loss, claim the tax benefit, and immediately repurchase the same or substantially identical asset. This is a major advantage over stocks, where wash sales prevent repurchase within 30 days. However, Congress may change this rule in future tax legislation. Always verify current rules with a tax professional.
What's the difference between short-term and long-term losses?
Short-term losses (assets held < 1 year) offset short-term gains first (taxed at ordinary income rates, 10-37%), then long-term gains. Long-term losses (held > 1 year) offset long-term gains first (taxed at preferential rates, 0-20%), then short-term gains. When mixing both types, the order matters for tax efficiency. Using short-term losses against short-term gains is more valuable since ordinary income rates are higher than capital gains rates.
How much can I deduct from tax-loss harvesting?
You can deduct losses up to the amount of your gains, plus up to $3,000 in excess losses against ordinary income per year. Any remaining losses carry forward indefinitely. For example, if you have $20,000 in losses but only $10,000 in gains, you can deduct $10,000 of losses against gains and $3,000 against ordinary income, with $7,000 carrying forward to future years.
How do I record crypto tax-loss harvesting transactions?
Keep detailed records of: Date of sale (acquisition and disposal), Fair market value in USD at time of sale, Cost basis (what you paid including fees), Amount of loss, and The replacement period (if any). Most exchanges provide transaction history, but for tax-loss harvesting tracking, consider using specialized software like CoinTracker, Koinly, or CryptoTrader.Tax that automatically identify harvestable losses and optimize your strategy.