📝 Description
Capital losses on cryptocurrency transactions are now governed by the new Article 68 of the Income Tax Consolidation Law (TUIR), effective as of 2023.
💡 If you realized capital losses during the year 2022, these can be taken into account to reduce your tax liability and can even be used to reduce your taxes in future years!
📂 Capital losses offset capital gains in the current year
You may have completed transactions that generated capital gains during the year and others that generated capital losses.
When you file your return, your capital losses will be deducted from your capital gains.
If the result is positive, you have a net capital gain and must pay a 26% tax on that amount.
If the result is negative, you have a net capital loss and will not have to pay any tax.
❗️ Even if you have a capital loss, it is imperative that you file your tax return!
Declaring your capital losses will allow you to use them in the coming years to reduce your taxes.
💡 Capital losses can reduce your taxes for the next few years
If you have a capital loss for this year, you can carry that loss forward for 4 years!
This means that you can potentially reduce your tax burden for the next 4 years.
However, for the loss to be carried forward, it is essential that you file a tax return and declare the loss to the tax authorities.
The precise amount of the loss must be declared so it can be utilized in subsequent years.
💡 If you realized capital losses before the new law went into effect, you can carry them forward on your return for the current year now!