It’s tax season, and this one is shaping up to be more stressful than normal given how backed up the IRS is! Here are a few tips to consider:
- Double check your tax return before you file! You want to avoid any back and forth with the IRS given how long it’s taking them to respond. Don’t be in a rush and miss something!
- Harvest losses in cryptocurrency. Usually, when you sell an investment at a loss (to be netted against future gain), you can’t buy the same investment for 30 days. This isn’t currently the case with cryptocurrency since it’s considered property rather than a security. If you have losses in a cryptocurrency holding, it may be worth it to sell it and buy it back a day later (seek help from your tax advisor for specific advice about your situation).
- Contribute to retirement accounts. It’s not too late to make 2021 contributions in some cases.
- Hire a CPA! We see people who have relatively complex situations trying to do their own taxes. It’s adding more stress than it’s worth. I was one of them just a few years ago!