CBS News Quotes Victor Jaramillo on Writing Off Bitcoin Losses
Anyone who bought into a high-flying cryptocurrency earlier this year is more than likely tearing their hair out right about now. The major cryptocurrencies, including bitcoin, bitcoin cash, litecoin and ethereum, have crashed to lows not seen in two years. Bitcoin slid below $3,250 this week—a value it last saw in the summer of 2017.
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"The people who are suffering right now are people who were buying at the end of last year, when Bitcoin was shooting up past five thousand, seven thousand, fifteen thousand," said Victor Jaramillo, a tax attorney at Caplin & Drysdale. "If you invested two years ago, you're still in the green."
Given crypto's general trajectory, though, even those who haven't lost money might be thinking of selling their holdings. Those hoping to minimize their tax liability can offset those gains by selling other assets that have dropped in value. It's also possible to donate bitcoin, just as one might donate appreciated stock—but, said Jaramillo, your recipient would need to be technically able to accept the donation.
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Excerpt taken from the article “Bitcoin is Plunging, But At Least You Can Write Your Losses Off Your Taxes” by Irina Ivanova for CBS News Moneywatch.