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Micro Strategy sold 704 BTC for about $11.8 million on December 22, the company wrote today in a filing with the United States Securities and Exchange Commission (SEC)—a move that may benefit the company in terms of tax liabilities, given how much value BTC has lost since MicroStrategy first began acquiring the cryptocurrency in 2020.
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“MicroStrategy plans to carry back the capital losses resulting from this transaction against previous capital gains, to the extent such carrybacks are available under the federal income tax laws currently in effect, which may generate a tax benefit,” the company wrote
You have this giant corp, that just attempted a stock move that most people in the US do to lower their taxes for the year.
But in all of this company , no one bothered talking to a CPA or anyone that understand investment taxes.
https://www.fidelity.com/learning-center/personal-finance/wash-sales-rules-tax
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The wash-sale rule prohibits selling an investment for a loss and replacing it with the same or a "substantially identical" investment 30 days before or after the sale.
If you do have a wash sale, the IRS will not allow you to write off the investment loss which could make your taxes for the year higher than you hoped.
You may have seller's remorse in a down market. Or you may be trying to capture some losses without losing a great investment.
However it happens, when you sell an investment at a loss, it's important to avoid replacing it with a "substantially identical" investment 30 days before or 30 days after the sale date.
It's called the wash-sale rule and running afoul of it can lead to an unexpected tax bill.
If you do have a wash sale, the IRS will not allow you to write off the investment loss which could make your taxes for the year higher than you hoped.
You may have seller's remorse in a down market. Or you may be trying to capture some losses without losing a great investment.
However it happens, when you sell an investment at a loss, it's important to avoid replacing it with a "substantially identical" investment 30 days before or 30 days after the sale date.
It's called the wash-sale rule and running afoul of it can lead to an unexpected tax bill.
And here is where MicroStrategy nullified their taxable losses.
https://decrypt.co/118061/microstrategy-sells-off-bitcoin-first-time-buys-even-more
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However, the firm then turned around and purchased 810 BTC for about $13.6 million on December 24.
So the genius at MicroStrategy, just negated any tax losses because they broke the wash-sales-rules.
GEEZ
