A lot of you have been dabbling in crypto the last couple of years. If you’re sitting on losses from any of those coins that didn’t quite “go to the moon”… there’s a year-end move that can put money back in your pocket.

– Crypto Is NOT Subject to Wash Sale Rules

With stocks, if you sell at a loss and buy back within 30 days, the IRS blocks the loss.

But with crypto?

The IRS treats it as property, not a security — which means:

– You can sell at a loss

– Capture the deduction

– And buy the same crypto back immediately

No 30-day waiting period. No wash sale rule applying.

That’s a huge advantage.

What this means for your construction business

If this year was profitable and you also have losing crypto positions, you can:

-Use those crypto losses to offset other capital gains

-Reduce your taxable income

-Keep the exact same investment position you want

This is perfect for contractors who want to lower taxes without changing their investment strategy.

Quick example

Sell a coin at a $4,500 loss?

You can deduct it this year — then buy the same coin back the same day if you want to stay invested.

No penalty. No delay.

If you want help running the numbers and seeing what kind of tax savings this could create for your business or personal return, reach out. Year-end planning is where we find the biggest wins.