Do You Have Losses in Your Crypto Portfolio?

Similar to your investment account, you can sell underperforming crypto or virtual currency to free-up the capital losses to offset your capital gains and up to $3K of ordinary income each year. As of now, crypto and virtual currency transactions are not subject to the Wash Sale Rules, so you can re-purchase the crypto or virtual currency moments after the sale and still get to enjoy the losses on your tax return.