Are wash-sale rules applicable to cryptocurrency trading?

3 answers

• Nov 24, 2021 · 3 years ago
  Yes, wash-sale rules can be applied to cryptocurrency trading. The IRS has not explicitly stated whether these rules apply to cryptocurrencies, but the general consensus among tax professionals is that they do. Since cryptocurrencies are considered property by the IRS, it is reasonable to assume that wash-sale rules, which apply to securities, can also be applied to cryptocurrency transactions. Therefore, if you sell a cryptocurrency at a loss and repurchase the same or a substantially identical cryptocurrency within 30 days, you may not be able to claim the loss on your taxes.
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• Nov 24, 2021 · 3 years ago
  No, wash-sale rules do not apply to cryptocurrency trading. Cryptocurrencies are not considered securities by the IRS, and wash-sale rules specifically apply to securities. Therefore, the rules that disallow claiming a loss on the sale of a security if a substantially identical security is purchased within 30 days before or after the sale do not apply to cryptocurrency transactions. However, it is important to consult with a tax professional to ensure compliance with all applicable tax laws.
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• Nov 24, 2021 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, wash-sale rules can be applicable to cryptocurrency trading. While cryptocurrencies are not classified as securities, the IRS has not provided clear guidance on whether wash-sale rules apply to cryptocurrencies. However, to avoid any potential issues with the IRS, it is recommended to treat cryptocurrency transactions as if wash-sale rules do apply. This means that if you sell a cryptocurrency at a loss and repurchase the same or a substantially identical cryptocurrency within 30 days, you may not be able to claim the loss on your taxes.
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