My 2022 LUNA loss was a welcome offset to my US Income tax this year

My second year filing the schedule D 1040 and 8949 turned out better than expected. If you have paid the 39 bucks to download your Ledger and exchange transactions to fill in the (Kxxnly) forms, (and) if you did a lot of swapping/trading, you probably have to manually review and edit the transactions in the software used to generate the IRS forms. In some cases it double posted certain transactions. I had to go through and delete several double posted transactions before generating the forms. Last year seemed like it worked smoother, but I didn’t swap any coins last year.

I was mostly concerned about the LUNA after it hit the ATH of over 115, and someone on this REDDIT sent out a “urgent message” to “get out or rid “of LUNA because it was falling hard fast. By the time I got my LUNA from my ledger to my exchange, and then did a no fee swap for ETH with what was left of my LUNA, I had in effect lost 1200 bucks, but saved losing it all thanks to that Redditor’s advice……Thanks REDDIT

After screening and editing the files, and generating the Schedule D and transaction worksheet 8949 (part 1), I was pleased to learn that the capital gains loss completely offset my income tax liability dollar to dollar. (Up to $3000 if filing jointly) I did not know that. In my specific case, this was the difference from owing or getting a refund from the IRS this year. I’m getting a three digit refund. I guess it’s better than nothing. HODL on.

#LUNA #loss #offset #Income #tax #year

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loksfox

i left luna with a 2x but it still hurts to this day how close i came to losing my money, stupid, when i look back damn how could i be so stupid back then.

rootpl

TLDR: *I shot myself in the foot but I didn’t kill myself, I’m only just bleeding! It’s all good!*

vjeva

Thanks Do Kwon and SBF for a wonderful 2022 that was full of red colored dildos that motivated me to discover my true pation called Ramen!

I really appreciate your efforts and for making my crypto journey unforgettable!

mesutdmn

One of the benefits of being down, u don’t pay taxes, this is why crypto is the best investment

TomatilloFabulous602

The benefits of being -%

Man I’m glad you getting a refund

kirtash93

I am happy to see that you got a refund.

magus-21

Welcome to the wild world of tax loss harvesting.

You can carry losses over $3000 to future years as well.

Mr_Bob_Ferguson

Is this a comedy post?

It’s missing the flair.

We are celebrating that losing money offsets future tax bills?

H_rama

Silver lining

I’m sorry about your luna loss, must have being terrifying…

3utt5lut

I wish it worked like that in Canada. We can only offset future loses (up to 3 years). Otherwise, my tax return would have been awesome, first 6 figure year.

Wonzky

Or you know, you could’ve just had more profits if LUNA didn’t implode

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step11234

Best thing LUNA ever did 😂

MyWayToTheTop

My opinion is losing money on crypto is unlucky. Not getting your tax loss is stupid.

c0horst

I pulled a big brain tax move this past year; mined RVN through 2021, didn’t sell at the peak, and paid 2021 taxes on 50k RVN @ $0.10. When it hit $0.019 in 2022, I bought another 50k, and when it hit $0.07, I sold 50k of them. On my 2022 taxes, I’m going to claim a loss for this sale, because I sold the 50k RVN at the cost basis of $0.10, and I’m still holding the 50k I bought at the 0.019 cost basis.

So I get to bring my average purchase price down by 50%, and claim capital losses in 2022. Means RVN just has to get over $0.05 for it to be profitable for me to sell now. Much better than being down 80%+.

ImaFreemason

You’re welcome for the financial advice. I lowered my fees to 5 Moons.

Bkokane

Since when can you offset capital losses against income tax?

RockEmSockEmRabi

This is the perfect post to sum up this sub lol. You lost way more money in LUNA than the capital losses offset. I appreciate this level of mental gymnastics

Harold838383

Yep it’s basically free gambling up to a certain point

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