Want to know the secret formula for dodging taxes forever?
Step one: Launch a memecoin that's basically worthless. Step two: Buy up your own tokens and watch that chart go parabolic. Artificial demand? Check. Step three: Claim this massive pump represents your entire year's profits on paper. Step four: Dump everything back to yourself for a single dollar.
Boom. You just crashed your own coin and "lost" everything.
Welcome to tax loss harvesting in crypto. This strategy lets traders offset gains by realizing losses - though the memecoin example shows how absurdly it can be manipulated. Real tax loss harvesting involves selling losing positions to reduce taxable income, but in the wild west of crypto markets, the lines get blurry fast. Just remember: tax authorities aren't stupid, and wash sale rules are evolving.
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Want to know the secret formula for dodging taxes forever?
Step one: Launch a memecoin that's basically worthless. Step two: Buy up your own tokens and watch that chart go parabolic. Artificial demand? Check. Step three: Claim this massive pump represents your entire year's profits on paper. Step four: Dump everything back to yourself for a single dollar.
Boom. You just crashed your own coin and "lost" everything.
Welcome to tax loss harvesting in crypto. This strategy lets traders offset gains by realizing losses - though the memecoin example shows how absurdly it can be manipulated. Real tax loss harvesting involves selling losing positions to reduce taxable income, but in the wild west of crypto markets, the lines get blurry fast. Just remember: tax authorities aren't stupid, and wash sale rules are evolving.