Bitcoin’s Mt. Gox & Taking Your Tax Losses – Forbes
Trending February 25, 2014 Comments Off on Bitcoin’s Mt. Gox & Taking Your Tax Losses – Forbes 22The single silver lining here is that Americans that fell in this disaster will at least be able to use their losses to help lower their tax burdens. United States tax law allows capital gain losses to be rolled forward without a statute of limitation. Thus, your Bitcoin losses will be deductible forever until you’ve used them all. This means that the $409.2 million is worth a potential $122.8 million in tax refunds.
We’ve already discussed in previous articles that bitcoins are classified as assets used as an investment by most of the Bitcoin community. Thus, taking your capital gain losses is just part of that process. You’re permitted to take up to $3,000 in capital losses per year to deduct against your personal income “above the line,” until you’ve exhausted all of your capital losses. (This is a very good thing!) I can’t say that this will give much solace to people that lost their accounts at Mt. Gox or the bitcoin community, but I hope that this gives them some measure of good news.
via Bitcoin’s Mt. Gox Goes Offline, Loses $409M — Recovery Steps and Taking Your Tax Losses – Forbes.
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