News | 10.04.21
Financial Advisors Pitch Bitcoin to Investors to Offset Portfolio Losses
The wealth-management industry is promoting bitcoin and other cryptocurrencies as investment assets, with some personal money managers offering products that let investors buy their own crypto stashes through their brokerage accounts. They claim if cryptocurrencies fall by a certain amount, the accounts automatically sell the digital tender, generating a taxable loss that can be used to counter other investment gains; the accounts then purchase the coins back in a short time for around the same price or lower. Cryptocurrencies can bypass "wash sale" rules because they are deemed property by the IRS, although a congressional panel recent cleared a proposal to treat cryptos like other securities that, if effected, would go into force on Jan. 1.
Read the full article on Wall Street Journal