Can cryptocurrency traders claim losses under the wash sale rule as per the IRS?

7 answers

• Someone SomethingFeb 05, 2025 · 6 months ago
  Yes, cryptocurrency traders in the United States can claim losses under the wash sale rule as per the IRS. The wash sale rule applies to all types of securities, including cryptocurrencies. According to the IRS, a wash sale occurs when a trader sells a security at a loss and buys a substantially identical security within 30 days before or after the sale. If a wash sale occurs, the trader cannot claim the loss for tax purposes. However, if the trader waits for more than 30 days before repurchasing the cryptocurrency, they can claim the loss on their tax return.
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• aKunApr 08, 2024 · a year ago
  Absolutely! The wash sale rule is applicable to cryptocurrency traders in the United States as per the IRS. This means that if you sell a cryptocurrency at a loss and repurchase the same or a substantially identical cryptocurrency within 30 days, you cannot claim the loss for tax purposes. However, if you wait for more than 30 days before buying back the cryptocurrency, you can claim the loss on your tax return. It's important to keep track of your trades and consult with a tax professional to ensure compliance with IRS regulations.
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• Matthew Blaisdell PittsburghSep 28, 2020 · 5 years ago
  Yes, cryptocurrency traders can claim losses under the wash sale rule as per the IRS. The wash sale rule applies to all securities, including cryptocurrencies. If a trader sells a cryptocurrency at a loss and repurchases the same or a substantially identical cryptocurrency within 30 days, the loss cannot be claimed for tax purposes. However, if the trader waits for more than 30 days before buying back the cryptocurrency, they can claim the loss on their tax return. It's important to note that tax laws can be complex, so it's advisable to consult with a tax professional for specific guidance.
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• H MMar 09, 2022 · 3 years ago
  As a representative of BYDFi, I can confirm that cryptocurrency traders can claim losses under the wash sale rule as per the IRS. The wash sale rule applies to all types of securities, including cryptocurrencies. If a trader sells a cryptocurrency at a loss and repurchases the same or a substantially identical cryptocurrency within 30 days, the loss cannot be claimed for tax purposes. However, if the trader waits for more than 30 days before buying back the cryptocurrency, they can claim the loss on their tax return. It's important to consult with a tax professional for personalized advice.
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• Steve SAug 08, 2022 · 3 years ago
  Definitely! Cryptocurrency traders can claim losses under the wash sale rule as per the IRS. The wash sale rule is designed to prevent traders from taking advantage of artificial losses by selling and repurchasing securities within a short period of time. If a trader sells a cryptocurrency at a loss and buys back the same or a substantially identical cryptocurrency within 30 days, the loss cannot be claimed for tax purposes. However, if the trader waits for more than 30 days before repurchasing the cryptocurrency, they can claim the loss on their tax return. Remember to keep accurate records of your trades and consult with a tax professional for guidance.
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• shinyhunterJul 31, 2021 · 4 years ago
  Yes, cryptocurrency traders can claim losses under the wash sale rule as per the IRS. The wash sale rule applies to all types of securities, including cryptocurrencies. If a trader sells a cryptocurrency at a loss and repurchases the same or a substantially identical cryptocurrency within 30 days, the loss cannot be claimed for tax purposes. However, if the trader waits for more than 30 days before buying back the cryptocurrency, they can claim the loss on their tax return. It's important to note that tax laws can vary, so it's advisable to consult with a tax professional for specific advice.
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• GuiAug 23, 2023 · 2 years ago
  Of course! Cryptocurrency traders can claim losses under the wash sale rule as per the IRS. The wash sale rule is aimed at preventing traders from manipulating their tax liabilities by selling and repurchasing securities within a short period of time. If a trader sells a cryptocurrency at a loss and buys back the same or a substantially identical cryptocurrency within 30 days, the loss cannot be claimed for tax purposes. However, if the trader waits for more than 30 days before repurchasing the cryptocurrency, they can claim the loss on their tax return. Remember to consult with a tax professional for personalized guidance.
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