Tax-loss harvesting allows investors to realize capital losses to offset capital gains or deduct up to $3,000 from ordinary income. However, the wash sale rule prohibits deducting losses if the same or substantially identical investment is repurchased within 30 days of being sold. While cryptocurrencies are currently considered property and not securities, legislators want to apply the wash sale rule to crypto. Even if different tokens have different uses, some like ETH and ERC-20 tokens could be seen as substantially identical. Investors must also consider transactions across all accounts to avoid a wash sale. Tools can help identify valid tax-loss harvesting opportunities while avoiding wash sales by tracking cost basis across portfolios. The accounting method used can impact wash sale calculations and taxes owed. In summary, understanding wash sale timing is important for crypto investors interested in conservative tax-loss harvesting.
Crypto exchanges had a turbulent 24 hours as Binance is in talks with US regulators to settle charges while Bittrex Global is winding down operations globally. The SEC sued Kraken for operating as an unregistered exchange. A potential multi-billion dollar settlement between Binance and the DOJ could allow Binance to continue operating in a restructured form, which analysts see as bullish for the industry. Coinbase also faces legal issues with the SEC as it seeks to diversify. While regulatory uncertainty persists, stronger platforms may emerge on the other side of consolidation in the industry. Overall, a large player resolving regulatory issues could provide a mild boost to Coinbase.
The US antitrust trial against Google is underway. Google pays Apple billions each year to be the default search engine on iPhones and other devices. Testimony revealed Google paid Apple $18 billion in 2021, though Google fought to keep the exact amount confidential. The trial also examined Google’s deals with other companies like Firefox. Microsoft CEO Satya Nadella testified that Bing has struggled to compete with Google due to Google’s dominance as the default. Documents from the trial provided new insights into discussions between Google and Apple executives over deals and privacy. The case focuses on whether Google has abused its search monopoly by striking exclusive deals. If Google lost the deals with Apple, it could cost the company billions and impact the search landscape. The trial has brought to light many previously private negotiations and business arrangements between tech giants.
Zoom fatigue is a real phenomenon, according to a new study that examined the physiological effects of videoconferencing. The researchers had students participate in 50-minute lectures both in-person and via Zoom, measuring brain activity and heart rate. They found significantly greater signs of fatigue, sadness, and less attention from video calls compared to in-person. Breaks were recommended every 30 minutes, as fatigue was observed after 50 minutes of Zooming. While virtual communication is here to stay, the nuanced nonverbal cues of in-person interaction inhibit rich connection on video. Developers may help by designing more natural platforms, though face-to-face cannot be fully replicated. Supportive work cultures that understand virtual communication differences can help alleviate prolonged reliance on digital formats.