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What is the IRS ‘wash sale’ rule — and does it apply to cryptocurrency losses? – MarketWatch

What is the IRS ‘wash sale’ rule — and does it apply to cryptocurrency losses? – MarketWatch



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  1. tldr; A loss from selling stock or mutual fund shares is disallowed for federal income tax purposes if, within the 61-day period beginning 30 days before the date of the loss sale and ending 30 days after that date, you buy “substantially identical” securities. The disallowed loss is added to the tax basis of the substantially identical securities that triggered the wash sale rule.

    *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

  2. The IRS wash rule states that investors cannot claim a loss on assets sold and re-bought within a 31 day period. This rule does not yet apply to crypto, but eventually it will. The US government is desperate for revenue and have targeted crypto trading as a major new source of taxes. It is only a matter of time until the wash rule applies to crypto.

    [https://www.cnbc.com/2021/05/25/bitcoin-crash-opens-door-to-a-tax-loophole-for-investors.html](https://www.cnbc.com/2021/05/25/bitcoin-crash-opens-door-to-a-tax-loophole-for-investors.html)

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