The one unvarying constant of Tax Court is variety: even long-established principles solve new problems. March saw a new look at Work Opportunity Tax Credit (WOTC) and the Empowerment Zone Employment Credit (EZEC) and a first look at the BBA reset of the partnership-partner relationship. Bitcoin, specifically hard-forked coins, are in view. The usual suspects like discovery jousts, SOL, and equitable tolling continue to show up. Take a look.
Tax Loss Harvesting with Cryptocurrency
Tyler Menzer, CPA, PhD
In the Fall of 2025, Bitcoin reached an all-time high of over $120,000. Since then, it fell over 40% to under $70,000 in the first quarter of 2026, before slightly recovering, currently resting around $75,000 as of this writing. With the steep drop in the price of Bitcoin and other cryptocurrencies, a common question from taxpayers is whether they can use the current losses to offset their other income. Large investors and professionals such as Grant Cardone and Shehan Chandrasekera (Head of Tax Strategy at Cointracker) have suggested that cryptocurrency can be sold and bought back immediately to claim the tax benefits. As with most things, the answer to this is not as simple as they portray, and many commentators, influencers, and sometimes professionals, miss the intricacies of cryptocurrency taxation.
