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A lot of my contractor clients hold significant crypto positions as liquidity reserves in their business, so I thought this may be relevant. Here’s one powerful year-end move most people don’t even know exists: tax-gain harvesting.

A lot of my contractor clients hold significant crypto positions as liquidity reserves in their business, so I thought this may be relevant. Here’s one powerful year-end move most people don’t even know exists: tax-gain harvesting.

If you expect to stay in a similar (or higher) tax bracket next year and you think your crypto will keep climbing, this strategy lets you:

– Lock in today’s long-term capital gains- Reset (“step up”) your tax basis to today’s higher value- Reduce your taxable gain on future appreciation

Example:If you bought Bitcoin at $20k and it’s now $110k, selling and immediately repurchasing it means your new basis becomes $110k.If it climbs to $140k next year, your taxable gain is only $30k—not $120k.

For contractors who’ve had a strong year and want to plan ahead, this can be a smart, proactive move before December 31.

If you hold any crypto and want to talk strategy tailored to your situation, send me a message. Year-end planning is where big tax savings happen.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.