How to use crypto losses to lower your tax bill

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Tax-loss harvesting can be used by crypto investors to lower their tax bill by offsetting gains with losses, but it's essential to understand the wash-sale rule and other tax-related issues.

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2025 was a wild year for bitcoin (BTC-USD) investors. If you lost money on bitcoin or other cryptocurrencies, you may be able to use those losses to lower your tax bill through a process called tax-loss harvesting. Claris Financial Advisors founder Lee Baker explains how tax-loss harvesting works, what crypto ETF investors need to know about the wash-sale rule, and other tax-related issues crypto investors should be aware of. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime.

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