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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.