Use this dip to save some taxes

Im from norway, and no expert on taxes, but from what i’ve read, the prinsiples on captal gain taxes seem to be quite the same here and in the US. (Which makes sence, because we tend to copy-paste a lot of stuff from the bigbois.) I also could be wrong here, so dyor.

Anyway. This fall in price is a good opertunity so save some taxes if you know that you have done something that will result in you owing taxes at the end of the year.

Paid interests: I use blockfi, Celsius ans Nexo, and i earn interest on my btc. For simplicity i will choose some easy to workwith numbers.

Lets say i have earned 1 btc in interest while the price was 60k. The norwegian goverment is going to want 23% of this. Meaning 23% of the price when I got it. Thats $ 13800. That is what i owe if i do nothing.

Now here is the trick: now the price is 40k (not really, but easy to quick math) i take that one btc. Trade it for Eth. That trade is a taxable event and it will result in a 20k loss.

I traded something that i got when it was worth 60k for something that is worth 40k. That is a 20k loss. Now, since i believe in bitcoin and are going to hodl i trade the eth right back to btc. This is 40k to 40k event, so no loss/gain. (Except some fees and the spread, so one would have to do some math before doing this)

At the end of the year i still have to pay tax on the interest i earned. $13,8k but i can reduct 23% on the the 20K i «lost» which is $ 4600. So i only pay $ 9200. Capital gains - capital loss.

Remember that on a later stage you would have to pay tax om that 20K if the price goes back up and you make another trade or sell it. But if you plan to hodl long time this is an opertunity to save some money.

The same aplies if you traded anything during the year. If you traded from-to something that was worth more than when you bought it. You have to pay tax. Now there might be an opertunity to make a back and forth trade to create a taxable event on a lower price to create a «loss» on paper, to get a tex reduction.

EDIT: ok, people has made me aware that a back-and-forth trade to avoid tax is illegal. So that is no good. But you could keep the money in another coin then.

EDIT2: this is why you shouldnt trust some random dude on the internett. Seems like there might be some legal implications. Lol. Check you local laws before you do anything! 😂