Loss carry-forward: what it means for crypto tax
A loss carry-forward is unused capital losses kept and applied against gains in future tax years. Most countries let losses that exceed your current-year gains roll forward, so a bad year can reduce tax in a later profitable one, provided you reported them.
General information, not tax advice. Crypto tax rules differ by country and change over time, verify against your country's guidance or a qualified advisor.
An example
A 5,000 loss you cannot use this year can offset a 5,000 gain next year, where carry-forward is allowed.
Why it matters for your tax
A carried-forward loss can be an asset for years, but only if you track it, losing sight of one is the same as throwing away a deduction.
CryptaTax handles this automatically across your wallets and exchanges, so the concept is applied consistently without you tracking it by hand. Try the crypto tax calculator →
Related terms
See the full crypto tax glossary for every term, or the crypto tax guides for how they fit together.
FAQ
A loss carry-forward is unused capital losses kept and applied against gains in future tax years. Most countries let losses that exceed your current-year gains roll forward, so a bad year can reduce tax in a later profitable one, provided you reported them.
See the crypto tax glossary for related terms, or the crypto tax guides for worked examples. Rules differ by country, so check your country's rules.