Is it true that american has some weird capital tax gains

[Anonymous No.51621852]

where you can be in debt even if you end the year on negative?


I've heard something like if you trade X for Y, make 200, then you have 1200

then you trade Y for A, and now have 950

You might still need to pay tax on the 200, because the -50 loss is seen as "less" ?

If so, that's fucking weird. In my country it's Year start + Year End = taxable amount 25%

[Anonymous No.51621956]

>>51621852
The scenario you're talking about is:
>Buy 1 BTC at $100 on Jan 1st 2022
>Sell 1 BTC at $200 on Jan 2nd 2022
>now have $100 in realized capital gains and owe roughly $33
>take the $200 you have from the sale and buy $200 in LUNC
>LUNC Rugs and goes to $0.00
>You are now at a $200 capital loss
>You hold LUNC past Dec 31st 2022
>You now can't claim the $200 loss on 2022 taxes
Owe $33 from BTC sale, have no remaining money and the asset you hold is now worthless and selling it at a $200 loss wont offset the gain because its in a different tax year.

[Anonymous No.51621978]

>>51621956
No, because wash trading exists.

[Anonymous No.51622247]

>>51621978
Wash trading is with the same asset. That is:
- Have $1000 of BTC
- Drops to $500
- You sell $500 BTC
- You immediately buy $500 BTC
You don't get to claim that as a $500 loss because it's a wash trade.

If you use a different asset:
- Have $1000 of BTC
- Drops to $500
- You sell $500 BTC
- You immediately buy $500 ETH
- You do not buy any more BTC in the next 30 days

It's not a wash trade and you do get to claim the $500 loss.

[Anonymous No.51622834]

>>51622247
>land of the free

[Anonymous No.51622949]

>>51622247
crypto isn't subject to wash trade rules