Crypto Tax Loss Harvesting Guide 2026 — Koinly

Tax loss harvesting is a powerful strategy to reduce your taxable crypto gains. In 2026, Koinly helps investors identify opportunities to minimize taxes by selling underperforming assets at a loss and offsetting gains.

What is Crypto Tax Loss Harvesting?

Tax loss harvesting involves selling cryptocurrency that has decreased in value to realize a loss. This loss can offset capital gains from other investments, potentially lowering your tax bill.

How Koinly Helps with Tax Loss Harvesting

• Automatically tracks gains and losses for all your crypto transactions
• Identifies assets with unrealized losses suitable for harvesting
• Generates tax reports that reflect losses for accurate filing
• Supports multiple exchanges, wallets, DeFi, staking, and NFTs

Step-by-Step Guide to Harvest Crypto Losses with Koinly

1. Sign up or log in to your Koinly account
2. Connect all your wallets and exchanges to import transactions automatically
3. Review your portfolio and identify coins with unrealized losses
4. Sell underperforming assets to realize the loss
5. Record the transactions in Koinly to reflect realized losses
6. Generate your tax report to offset gains and lower taxable income

Tips for Beginners

• Track all transactions accurately to maximize tax benefits
• Consider timing: selling near year-end can offset gains from earlier in the year
• Be aware of the “wash sale” rules (if applicable in your country)
• Use Koinly’s dashboard to visualize losses and gains for smarter decisions

Frequently Asked Questions (FAQs)

1. What is the main benefit of tax loss harvesting?

The primary benefit is reducing taxable gains, which can lower your overall tax bill.

2. Can Koinly calculate tax loss harvesting automatically?

Yes, Koinly tracks gains and losses automatically, making it easy to identify opportunities for tax loss harvesting.

3. Do I need to sell assets immediately to harvest losses?

Yes, you must realize the loss by selling the asset. Koinly can help you track when the sale occurs for accurate tax reporting.

4. Does Koinly support DeFi and NFTs for tax loss harvesting?

Yes, Koinly supports DeFi platforms, staking, NFTs, and multiple wallets for full portfolio tracking.

Conclusion

Tax loss harvesting is an effective strategy for minimizing crypto taxes in 2026. With Koinly, you can easily track losses, offset gains, and generate accurate tax reports. Beginners and experienced investors alike can leverage Koinly to make smarter tax decisions and optimize their crypto portfolio.