Bitcoin crash opens door to a tax loophole for investors

Crypto investors may be shell-shocked by a recent plunge in prices. But that sell-off has a silver lining: It opens the door to a money-saving tax strategy.Popular cryptocurrencies like bitcoin and ethereum shed more than half their value in volatile trading over the past month or so.A bitcoin investor who bought at the mid-April peak (around $65,000) and sold low on Wednesday (near $30,000) would have lost 54%, for example.But crypto losses are treated differently from those of stocks and mutual funds. That's because so-called "wash sale" rules don't apply, according to financial advisors.This offers two benefits to crypto investors: They can sell crypto for a loss, and then use that loss to reduce or eliminate capital-gains tax on winning investments. Then, they can quickly buy back the crypto they sold so as not to miss out on a subsequent rebound in price.The first benefit (called "tax-loss harvesting") is allowed…

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