Advisors need to make sure their clients are paying heed to their crypto returns as they focus on tax loss harvesting. In the past, many investors “flew under the radar” with their crypto returns, but the IRS is now focused on the issue. Some clients may have major gains that they need to report. The IRS considers crypto to be property, which means investor have to pay taxes on their profits.
FINSUM: Despite how the market looks now, stocks had a great year in 2021, and combined with some potentially big crypto wins, there is a lot of capital gains to offset with tax loss harvesting.