Your Inputs
What did you originally pay for this Bitcoin position?
What is the current market value of this position?
What percentage of the position are you considering selling?
Your estimated marginal income tax rate (federal + state)
Your Results
This is the loss you could realize by selling 100% of your position
This is the estimated tax savings from realizing the loss at your marginal rate
Important: This calculator illustrates how realizing a loss could offset other gains or income under current tax rules. Actual tax treatment depends on your complete situation, applicable limits ($3,000 annual capital loss deduction cap), wash sale considerations, and jurisdiction. Always consult a qualified tax professional.
How Tax-Loss Harvesting Works
Tax-loss harvesting involves selling an investment at a loss to offset capital gains or ordinary income.
For Bitcoin, you can realize losses to offset other capital gains, with up to $3,000 deductible against ordinary income annually.
Unlike stocks, Bitcoin is currently not subject to wash sale rules, allowing immediate repurchase.
Key Considerations
- • Losses offset gains at the same tax rate
- • Up to $3,000 annual deduction vs. income
- • Excess losses carry forward indefinitely
- • No wash sale rule currently applies to Bitcoin
- • Consult a CPA for personalized advice
Disclaimer
This is a simplified educational tool. It does not account for all tax complexities, state taxes, AMT, or individual circumstances. This is not tax advice.