What are the tax implications of wash sale gain in the context of digital currencies?

1 answers

• May 13, 2022 · 3 years ago
  As a representative of BYDFi, I can tell you that the tax implications of wash sale gain in the context of digital currencies can be quite complex. The wash sale rule, which disallows losses on the sale of securities that are repurchased within 30 days, also applies to digital currencies. This means that if you sell a digital currency at a loss and buy the same or a substantially identical digital currency within 30 days, the loss may be disallowed for tax purposes. It's important for cryptocurrency traders to consult with a tax professional to ensure they are accurately reporting their gains and losses and complying with the wash sale rule.
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