Amerifat tax question

Thankfully the value is still in USD, not BTC, so you'd pay nothing, but be able to write off up to 3k in losses and carry over what is left.

The tax structure around crypto is literally a worst case scenario

What do you mean by that, exactly?

Also, correct me if I'm wrong, but isn't this a favorable system? Isn't it in our best interest to have the rest of 2018 be a shitty year for crypto? Because then we can take a crazy loss deductible, roll anything over $3000 onto the next few years, and then hope for potential gains in 2019? If we can write off any losses on a roll-over basis, then technically, in the long run, we aren't losing any money (accounting profits, not economic)?

nigger, I paid like 20k in taxes on my gains last year, and my stack is worth less than that now

In no circumstance is it favorable to lose money, are you insane?

I meant that the way the taxes are structured is the biggest possible pain in the ass. The way the tax is now, EVERY SINGLE transaction is a SINGLE and SEPARATE taxable event, and you're theoretically supposed to send the taxes right then and there, or at least quarterly, but only can declare losses at the end.

You're losnig 100% of the money that goes down, but pay tax only on 25% of gains. It's much more favorable to have gains, no matter how small.

>temporarily
sure, just make sure it's not a wash sale when you rebuy

But if we're assuming that BTC is following the typical log scale, it will be in decline for a few years before popping off again. So wouldn't it be ideal to maximize your loss deductible for this year, then buy back in [being careful to avoid wash tx like said], and await the gains"

t. IRS

I mean, this is going by the rule book, no law is being broken here. Just circumnavigating the clusterfuck of the taxcode in trying to minimize losses.