Are losses from disallowed wash sales deductible for cryptocurrency investors?

3 answers

• abubakar musaAug 08, 2024 · 2 years ago
  Yes, losses from disallowed wash sales are deductible for cryptocurrency investors. According to the IRS, wash sales occur when an investor sells a security at a loss and repurchases the same or a substantially identical security within 30 days. While wash sales are disallowed for tax purposes, the losses can still be deducted. However, it's important to keep accurate records and report the losses properly on your tax return.
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• Nikhil BhatNov 27, 2024 · a year ago
  Absolutely! Cryptocurrency investors can deduct losses from disallowed wash sales. The IRS treats cryptocurrencies as property, and the wash sale rule applies to property transactions as well. So, if you sell a cryptocurrency at a loss and buy it back within 30 days, the loss is disallowed for tax purposes. However, you can still deduct the loss on your tax return. Just make sure to follow the IRS guidelines and report the losses accurately.
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• Michael GillDec 09, 2025 · 2 months ago
  Yes, losses from disallowed wash sales can be deducted by cryptocurrency investors. The wash sale rule applies to all types of investments, including cryptocurrencies. However, it's important to note that the IRS has not provided specific guidance on wash sales for cryptocurrencies yet. Therefore, it's advisable to consult with a tax professional or accountant to ensure you're following the correct procedures and reporting the losses accurately.
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