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Crypto sounds a wake-up call – and a tax opportunity – for investors

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Crypto sounds a wake-up call - and a tax opportunity - for investors

Detail of the statue of Satoshi Nakamoto, the pseudonym used by the inventor of bitcoin in Budapest, Hungary.

Janos Kumar | Getty Images News | Getty Images

The price of popular cryptocurrencies like bitcoin and ethereum fell on Friday after Chinese authorities stepped up the crackdown, essentially banning crypto.

Government intervention, while important, does not mean investors should run for the hills, financial advisers say. But it’s another reminder that crypto holdings are subject to wild price swings, he said.

“I wouldn’t call it the end of the world,” said Leon Labrecque, accountant and chartered financial planner at Sequoia Financial Group, based in Akron, Ohio. “It’s just a wake-up call.”

“You have to recognize that this is a volatile asset and all the ups and downs go hand in hand,” he said.

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This volatility opens up tax planning opportunities that could be available for a few more months, the advisers said, based on the Democrats’ final agreement on federal tax law.

By 3 p.m. ET on Friday, the price of bitcoin had fallen 6% to around $ 42,000. Ether, the second largest digital currency, fell more than 8% to almost $ 2,890.

Investors are stunned after the People’s Bank of China declared all crypto-related activities illegal. For example, these activities include trading services and foreign exchange transactions. This is the latest step in a nationwide crackdown on digital currencies.

The notice said the ban on bitcoin and other cryptocurrencies could be of concern to current and potential investors, as the government restricts the pool of buyers from a significant portion of the world’s population. And other governments will also be implementing additional rules, he said.

But for long-term prices, it may not make much of a difference. The daily drop in the cost of crypto, which may seem significant at the time, could be part of a long-term correction of course towards an average value, advisers said.

“Will government regulations cause major volatility in crypto?” Yes, ”said Wayne Wilbanks, Managing Director and Chief Investment Officer at Wilbanks Smith & Thomas Asset Management in Norfolk, Virginia. “Will this make crypto obsolete?” No.

“I don’t think Chinese regulations, or even US regulations, make a big difference in the long run,” he said.

Bitcoin, for example, is still up around 40% despite Friday’s drop. (However, it remains close to the April high of $ 63,000.)

Volatility has been a signature of cryptocurrencies to date. For example, prices have skyrocketed this year following a tweet from Tesla co-founder and crypto enthusiast Elon Musk.

Advisors generally advise investors to allocate a small portion of their portfolio (which they would be entitled to lose) because of risk.

tax benefit

According to Jeffrey Levine, accountant and planning director at Buckingham Wealth Partners in Long Island, New York, investors can use recent volatility in their favor.

Stock, crypto, and other investors are able to “reap” investment losses for tax benefits. Basically, they can sell a losing investment (eg, bitcoin) and use the loss to wipe out the gains from a winning investment elsewhere in their portfolio.

This “harvest of tax losses” reduces (or eliminates) the capital gains tax, which is due on the appreciable value of the investment sold.

However, unlike stock market investors, what crypto investors sell can quickly redeem in the same digital currency or a similar currency. As a result, they can benefit from the tax advantage mentioned above, as well as a portfolio advantage if volatile assets regain value too soon.

House Democrats have offered to close this crypto loophole later this year as part of a campaign to reform the tax code.

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SCVNews.com | Today in the history of SCV (21-22 oct.)

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California News Times
2007 -Backweed Firechar 38,356 acres, destroying 21 homes in Canyon Country and Agua Darcy [story]

Backweed fire

Family Promise Santa Clarita is teaming up with Williams Homes and Home Aid LA to launch a new local resource center.

Family promise to launch into a new resource center

Los Angeles County public health officials on Wednesday confirmed 31 new deaths and 1,267 new cases of COVID-19 in the Santa Clarita Valley, for a total of 36,859.

Wednesday's COVID-19 summary: Public health promotes vaccines to watch sports.  Total of 36,859 cases of VCS

Canyons University freshman long distance runner Daniel Salsed was named Female Athletes of this Month by the California Community College Sports Information Association (CCCSIA) in September.

COC Cross Country Star Selected as CCSIA Athlete of the Month

Person arrested after investigation on suspicion of machete attack

Caltrans today announced a new Clean California pilot program that will provide up to $ 250 for Adopt-a-Highway volunteers to pick up road debris.

Caltrans Offers Up To $ 250 For Clean Debris Removal From California Highway

The Zonta Club of Santa Clarita joins Empower Hour, a non-profit anti-trafficking organization, i-5 Freedom Network, calling on the general public to raise awareness about this modern day slavery, how it looks and what the community can do. I am. this.

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William S. Heart Union High School District board members will discuss and vote on a request to receive $ 15 million in government funding for COVID-19 relief on campus Wednesday evening.

Hart District Commission discusses $ 15 million COVID bailout and new collective agreement

Walnut Creek will file an attorney under the California Voting Rights Act as early as next week, forcing Santa Clarita City Council to move away from “massive” voting unless a district-based electoral system is passed at the time. of the next meeting. The lawyer said on Tuesday.

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1873 -Santa Barbara attorneys Charles Fernardo and JT Richards buy Rancho San Francisco (75 square miles from SCV) for $ 33,000 (69 cents an acre) at Sheriffs Sale [story]

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The last Vietnam War-era helicopter in the USDA Forestry Department’s Pacific Southwest Firewatch Cobra program is an aerial surveillance department that uses the latest helicopters and implements the latest technology such as wing aircraft fixed to serve larger landscapes. We made our last flight on Saturday as we entered a new era.

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Richard Omura, a local artist and member of SCAA, will be exhibiting his art at the New Hall Main Theater until October 31. The show is called “Steampunk Vision” and includes several of his unique multimedia works.

A local artist exhibiting an art exhibition titled

HOPE Theater Arts unveiled a free live, face-to-face, storytime event at Canyon Country’s Open Book at 2:30 p.m. on Sunday, November 7.

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Los Angeles County public health officials on Tuesday confirmed 26 new deaths and 825 new cases of COVID-19 in the county, resulting in a total of 36,800 cases in the Santa Clarita Valley. In addition, staff at Henry Mayo New Hall Hospital have confirmed an additional death toll, bringing the total number of deaths from COVID-19 to 176 since the start of the pandemic.

Tuesday's COVID-19 summary: Henry Mayo confirms 176th death Public health report 36,800 CVS cases total

Safety has always been Caltrans’ top priority, and during National Pedestrian Safety Month, which is held each October, the department is stepping up efforts to improve safety and educate the general public on how to protect pedestrians. pedestrians. Make.

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Jim Clipfell, a Saugus High School teacher and director of California Teacher of the Year 2021, was honored along with 99 other teachers in a White House ceremony on Monday.

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26201 The new Santa Clarita Valley Sheriff’s Office on Golden Valley Road was announced on Monday.

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Officials at Henry Mayo New Hall Hospital announced additional deaths on Monday, confirming that the total number of deaths from COVID-19 since the start of the pandemic has reached 175, spokesman Patriq Moody confirmed.

COVID-19 summary Monday: Henry Mayo reports 175th death.  Total SCV cases 36,756

SCVNews.com | Today in SCV History (October 21-22) Source link SCVNews.com | Today in the history of SCV (21-22 oct.)

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Driver hits cyclist and barricades himself in Huntington Park home

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California News Times
Huntington Park, Calif. (KABC) – Witnesses and officials say a hit-and-run suspect barricaded himself at his Huntington Park home after attacking a cyclist on the street Wednesday night.

Cyclists were attacked in the areas of Pacific Boulevard and Randolph Street.

Witnesses told ABC7 that a cyclist on a bicycle broke into a stranger’s house in the neighborhood around 8 p.m. and hid inside.

The SWAT team responded and circled the house.

Witnesses say they believe the people in the house have left unharmed.

The condition of the cyclist was not immediately known.

The barricade situation lasted for several hours from Wednesday evening to nightfall.

Copyright © 2021 KABC-TV. All rights reserved.

Driver hits cyclist, barricades himself in Huntington Park house Source link Driver hits cyclist, barricades himself in Huntington Park house

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VW Beetles has joined Mexican-American singer Ángela Aguilar to support local Hispanic restaurants

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California News Times
Los Angeles, CA (KABC) – A fleet of specially painted Volkswagen Beetles joined Mexican-American singer Angela Aguilar in Boyle Heights today.

They visited the family-run Mexican restaurant El Tepeyac Cafe, called on the LA community to support a local Hispanic restaurant, and prepared for Dia De Los Muertos, also known as Day of the Dead.

“I’m very excited, especially because Manzanitasol is helping small businesses in Los Angeles,” Aguilar said. “We offer gift cards and Pan de muerto (bread for the dead). We’re giving a good time after a really tough pandemic. “

The Volkswagen Beetle symbolizes Mexican taxis and will surprise Angelino in major regions with a special gift card this weekend. ”

Copyright © 2021 KABC-TV. All rights reserved.

VW Beetles joined Mexican-American singer Ángela Aguilar in supporting local Hispanic restaurants Source link VW Beetles joined Mexican-American singer Ángela Aguilar in supporting local Hispanic restaurants

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