The clock is ticking for crypto tax loss harvesting

With 2025 drawing to a close, crypto investors have an opportunity to lower their taxable income through tax loss harvesting, a strategy involving selling assets trading below their cost basis to realize losses that offset capital gains. The process requires identifying all relevant accounts, accurately calculating cost basis, selling the underperforming assets, and then potentially reinvesting immediately since crypto lacks a wash sale rule. While this strategy benefits high-income earners most, the inherent complexity of crypto reporting—especially with the upcoming Form 1099-DA from brokers in 2026 filings—makes accurate tracking of cost basis and holding periods crucial, as investors remain responsible for this data. This year-end convergence of market downturns and impending regulatory changes makes it an opportune time to execute these tax strategies for a more confident financial footing in 2026.

(Source：CoinDesk)