Are there any tax implications for wash sales on cryptocurrency?

1 answers

• May 05, 2022 · 3 years ago
  At BYDFi, we understand the tax implications of wash sales on cryptocurrency. Wash sales can have an impact on your tax liability, as the loss from the sale may be disallowed for tax purposes. Instead, the loss is added to the cost basis of the repurchased cryptocurrency. This means that you cannot immediately deduct the loss, but you can use it to offset future gains when you eventually sell the repurchased cryptocurrency. It's important to consult with a tax professional to ensure compliance with the specific rules and regulations regarding wash sales and taxes in the cryptocurrency market.
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