Crypto goes down as well as up. If you sold at a loss this year, the good news is that SARS does allow you to offset those losses — but only if you follow the right rules.

Capital Losses vs Revenue Losses

How your loss is treated depends — again — on whether you're classified as an investor or a trader.

Investor (CGT losses)

Capital losses can only be set off against capital gains in the same or future tax years. They cannot reduce your salary or other income. They carry forward indefinitely until you have capital gains to absorb them.

Trader (Revenue losses)

If you're a trader and your crypto trading produces a loss, that loss can in theory offset other income — but SARS scrutinises this closely. Assessed losses from crypto trading are typically ring-fenced unless trading is your primary business.

The CGT Offset Mechanism

As an investor, here's how losses work in practice:

Say you made R120,000 on BTC but lost R30,000 on ETH in the same tax year.

  • Net capital gain: R120,000 − R30,000 = R90,000
  • Less R50,000 annual exclusion: R40,000
  • 40% inclusion: R16,000 added to taxable income

Compare that to paying tax on R120,000 gain without the loss offset. The ETH loss saves you real money.

Carrying Forward Losses

If your total capital losses exceed your capital gains in a year, the excess carries forward to the next tax year. There's no time limit — you can carry losses forward until you eventually have gains to absorb them.

Example: You made no gains in 2025/26 but lost R80,000 on crypto. That R80,000 capital loss carries forward. In 2026/27, you make R150,000 in gains. Your net gain: R150,000 − R80,000 = R70,000. Then apply the R50,000 exclusion.

What You Cannot Do

  • Capital losses cannot reduce salary income — they can only offset other capital gains
  • Losses on assets held for personal use are disregarded (not applicable to crypto, which is an investment asset)
  • Wash sale rules — SARS doesn't have explicit wash sale rules like the US IRS, but be careful about artificially crystallising losses and immediately repurchasing the same asset

Record Everything

To claim a capital loss, you need records proving the loss. Keep your exchange transaction history showing purchase price, sale price, date, and fees. If you're audited, you must be able to substantiate every loss claim.

Calculate Your Net Position

Use our free CGT Calculator to run both your gains and losses. Enter each transaction separately to see your net position and estimated tax — including how losses reduce your final bill.