ilmscore | Why I’m Selling Bitcoin

Why I’m Selling Bitcoin

Published: 2021-05-28
Status: Available | Analyzed

Predictions from this Video

Total: 7
Correct: 0
Incorrect: 0
Pending: 7
Unrated: 0
Prediction
Topic
Status
The speaker reiterates their goal to have 5% of their total net worth invested in cryptocurrency by the end of the year (2021).
"I'm still on track to get 5% of my entire net worth in cryptocurrency by the end of the year"
ETH
Pending
The speaker plans to maintain a portfolio allocation of 40% Ethereum and 60% Bitcoin.
"My goal is to keep an allocation of 40% ethereum and 60% Bitcoin"
ETH
Pending
The speaker indicates a forward-looking strategy of utilizing tax loss harvesting opportunities within their cryptocurrency investments to save money.
"and if I have a chance to save money in the process like with tax loss harvesting I'm all for it"
BTC
Pending
The speaker predicts that due to the volatility and recent significant drop in Bitcoin, it is an opportune time to realize losses from these assets to offset other profits.
"but because this is a highly volatile asset it's already dropped a pretty considerable amount to me it just seems like the right time to lock in those losses and then use that to offset other profits I make elsewhere"
BTC
Pending
The speaker predicts that the wash sale rules, which typically prevent immediate repurchase of a sold security, may not apply to cryptocurrency due to its classification as property, allowing for immediate buy-back after selling at a loss.
"with cryptocurrency they've said that technically it's not a security it's a property and therefore people argue that the wash sale rules don't apply here which would allow you to sell something and immediately buy it back without worrying about that 30-day window"
Tax Loss Harvesting for Cryptocurrency
Pending
The speaker predicts that the IRS might employ the Economic Substance Doctrine to challenge cryptocurrency transactions that appear to be solely for tax benefits, even if wash sale rules don't technically apply.
"The IRS doesn't classify cryptocurrency as a security and technically a watchh sale shouldn't apply they might try to use something called the economic substance Doctrine to try to get their profits"
Economic Substance Doctrine and Crypto
Pending
The speaker suggests that tax loss harvesting is typically most beneficial when conducted at the end of the year to maximize immediate tax benefits on the upcoming tax return.
"usually tax loss harvesting is better done at the end of the year so that way you get the immediate benefit of getting to use all of that on your upcoming tax return"
Tax Loss Harvesting Timing
Pending