Are there any specific guidelines for reporting wash sale on tax return for digital currency investments?

3 answers

• playergamesproJan 30, 2024 · 2 years ago
  When it comes to reporting wash sale on your tax return for digital currency investments, there are some specific guidelines you need to follow. According to the IRS, a wash sale occurs when you sell or trade a digital currency at a loss and then buy a substantially identical digital currency within 30 days before or after the sale. The loss from the wash sale is not deductible, but it is added to the cost basis of the new digital currency. You must report the wash sale on Schedule D of your tax return and adjust the cost basis accordingly.
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• Atse WUBE WubsraApr 16, 2025 · 4 months ago
  Reporting wash sale on your tax return for digital currency investments can be a bit tricky. The IRS has not provided specific guidelines for digital currency, but the general rules for wash sale still apply. If you sell a digital currency at a loss and buy a substantially identical digital currency within 30 days, the loss is disallowed and the cost basis of the new digital currency is adjusted. It's important to keep accurate records of your digital currency transactions and consult with a tax professional to ensure you are reporting wash sales correctly.
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• Hartley AdcockMay 19, 2023 · 2 years ago
  At BYDFi, we recommend consulting with a tax professional for specific guidelines on reporting wash sale on your tax return for digital currency investments. While the IRS has not issued specific guidelines for digital currency, it's important to follow the general rules for wash sale. Keep track of your digital currency transactions and consult with a tax professional to ensure you are reporting wash sales accurately and in compliance with tax laws.
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