Crypto has a target on its back with the IRS!

Crypto investors are advised to secure all relevant tax information as the IRS and SEC are paying extra attention to digital assets. Terrence Yang, managing director of Swan Bitcoin, advises investors to collect documentation on sales and crypto investments that went to zero, as many did during last year's "crypto winter." To alleviate the pain of limited tax benefits, Yang recommends hiring an accountant and harvesting Bitcoin capital losses. This involves selling Bitcoins to generate a capital loss on returns, which can be rolled forward to other tax years. However, this benefit only applies to Bitcoin, not other cryptocurrencies that are generally classified as securities subject to the wash sale rule. Regardless, investors should aim to pay the correct amount of taxes to avoid penalties and reduce audit risk.