Are wash sales applicable to cryptocurrency transactions?

7 answers

• Alysson ChagasDec 30, 2022 · 2 years ago
  Yes, wash sales rules can be applied to cryptocurrency transactions. Wash sales occur when an individual sells a security at a loss and then buys the same or a substantially identical security within 30 days before or after the sale. This rule is designed to prevent investors from claiming artificial losses for tax purposes. In the context of cryptocurrency, if you sell a particular cryptocurrency at a loss and then repurchase the same or a similar cryptocurrency within the 30-day window, the IRS may consider it a wash sale. It's important to consult with a tax professional to understand the specific implications for your situation.
  640

  320
• Kathryn RobertsonAug 17, 2021 · 4 years ago
  Absolutely! The concept of wash sales can definitely apply to cryptocurrency transactions. Just like with traditional securities, if you sell a cryptocurrency at a loss and then buy it back within a short period of time, you may trigger the wash sale rule. This means that you won't be able to claim the loss for tax purposes. It's crucial to keep track of your cryptocurrency trades and consult with a tax advisor to ensure compliance with the wash sale rules.
  461

  154
• NullyAug 22, 2020 · 5 years ago
  Yes, wash sales can be applicable to cryptocurrency transactions. According to the IRS, wash sales rules apply to stocks, bonds, and other securities. While cryptocurrencies are not explicitly mentioned, they can be considered securities in certain cases. Therefore, if you sell a cryptocurrency at a loss and repurchase it within the wash sale period, you may not be able to claim the loss for tax purposes. It's always a good idea to consult with a tax professional to understand the specific rules and implications for your cryptocurrency transactions.
  555

  139
• Hanna ValentinApr 25, 2022 · 3 years ago
  Wash sales rules can indeed be applied to cryptocurrency transactions. The IRS has not provided specific guidance on this matter, but it's generally recommended to treat cryptocurrencies as securities for tax purposes. If you sell a cryptocurrency at a loss and buy it back within the wash sale period, you may not be able to deduct the loss from your taxes. It's advisable to consult with a tax advisor who specializes in cryptocurrency taxation to ensure compliance with the wash sale rules.
  493

  99
• Topp SmtpMar 27, 2021 · 4 years ago
  Yes, wash sales rules can be applied to cryptocurrency transactions. The concept of wash sales is not limited to traditional securities and can be extended to cryptocurrencies as well. If you sell a cryptocurrency at a loss and repurchase it within the wash sale period, you may not be able to claim the loss for tax purposes. It's important to keep accurate records of your cryptocurrency trades and consult with a tax professional to understand the specific implications for your situation.
  492

  82
• Noman ChughtaiNov 11, 2021 · 4 years ago
  Wash sales rules can be applicable to cryptocurrency transactions. While the IRS has not provided explicit guidance on the treatment of cryptocurrencies, it's advisable to follow the same principles as traditional securities. If you sell a cryptocurrency at a loss and buy it back within the wash sale period, you may not be able to deduct the loss for tax purposes. It's recommended to consult with a tax advisor who is knowledgeable about cryptocurrency taxation to ensure compliance with the wash sale rules.
  511

  73
• Sunil Kumar KSMar 09, 2025 · 3 months ago
  BYDFi does not provide tax advice, but it's worth noting that wash sales rules can potentially apply to cryptocurrency transactions. If you sell a cryptocurrency at a loss and repurchase it within the wash sale period, you may not be able to claim the loss for tax purposes. It's always a good idea to consult with a qualified tax professional to understand the specific rules and implications for your cryptocurrency trades.
  425

  54