Following up on yesterday's tax tip...
You might have heard about tax lost harvesting. Selling bitcoin and then buying it right to recognize a loss for a given tax year.
But would you ever want to harvest a tax gain? Maybe if your gains are taxed at zero percent.
Let's walk through an example.
You are retired/didn't have any income for the year. You have 1 bitcoin purchased over a year ago at $60k. Bitcoin goes up to 100k. You could potentially sell, buy it right back. Realize the $40k gain taxes at zero %. And your new cost based goes from $60k to $100k