Biden Budget Plan Would Close Crypto Tax Loss Harvesting Loophole

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U.S. President Joe Biden’s proposed budget, set to be unveiled Thursday, will include a provision to close tax loss harvesting on crypto transactions. From a report: A White House official confirmed that the budget will include a tax provision intended to reduce wash sales trading by crypto investors. At present, investors can sell any cryptocurrencies at a loss, claim the loss on their taxes and then buy the same amount and type of cryptocurrencies again. According to the Wall Street Journal, the provision would be expected to raise up $24 billion.

The president’s proposed budget will lay out his fiscal priorities. White House officials told the Journal the plan would lower the U.S. deficit by $3 trillion over the next 10 years. Any budget would need passage through the House of Representatives and the Senate before going to the president’s desk for his signature.

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