Max Maher has been providing his YouTube followers and Patreon subscribers with a steady stream of strategies for not only making money in the crypto space but also just as importantly he shares how to save money too. For those avid Youtube followers (140,000 and counting) and subscribing Patrons (10,000 and ever increasing) who are already taking advantage of the valuable information that Max provides they know firsthand what’s new with all things crypto from being connected with Max’s online platforms.
In today’s article Max shines the spotlight on how to maximize crypto returns even when markets are down. He highlights one specific area to pay attention to and that is regarding the ‘wash sale’ loophole that might be changing soon under the direction of the SEC mandate. This information will have a huge impact on tax loss harvesting. This type of tax strategy is where capital losses can be offset against capital gains to maximize financial returns.
Let’s take a look at how the tax loss harvesting strategy works, and what this means for buying and selling cryptocurrencies. Max explains that currently cryptocurrencies do not have to adhere to what all other financial investment vehicles, such as stocks etc. must comply with. Whereby any financial losses cannot be sold and then instantly repurchased to take full advantage of this capital loss tax strategy. The IRS stipulates that any investor attempting this maneuver is creating artificial losses in order to then repurchase the same investment and is doing so strictly for financial gain. In order to halt this practice, the IRS implemented the ‘wash sale rule’ that prohibits investors from buying the same stock investments 30 days prior or 30 day after selling the same type of stocks to claim capital losses against taxes. Basically a 61-day period of non-investment of the same stock before a similar purchase can be made.
The wonderful news that Max shares regarding this ‘wash sale rule’ is that currently crypto does not fall under this financial securities rule so currently these financial restrictions do not apply. This can generate massive savings on cryptocurrencies when claiming losses. For a more detailed explanation of how tax loss harvesting works and the current loophole status available in crypto simply watch Max’s YouTube video with this link.
Of course, with any information that Max provides to his YouTube followers and Patreon subscribers it always comes with the caveat that investors always seek advice from their tax and financial advisors before proceeding with any investment purchase or tax loss harvesting strategy.
Gaining access to Max Maher’s YouTube Channel and better yet his Patreon site is as easy as connecting with him on these online platforms. Anyone who is already taking advantage of Max’s digital content will certainly attest to his attention to detail regarding his data analysis gathering that he shares on his online platforms. His followers and subscribers know that Max’s main purpose is to help them have a profitable day, each and every day in the crypto space.
For even more information on all that’s new with crypto follow Max Maher here.