Can I claim a tax deduction for wash sales in my cryptocurrency portfolio?

3 answers

• Kaviyarasu E MechOct 21, 2020 · 5 years ago
  According to current tax laws, wash sales are not eligible for tax deductions. Wash sales occur when you sell a cryptocurrency at a loss and repurchase the same or a substantially identical cryptocurrency within 30 days. The purpose of disallowing deductions for wash sales is to prevent investors from artificially creating losses for tax purposes. Therefore, you cannot claim a tax deduction for wash sales in your cryptocurrency portfolio.
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• Abdul Qayyum KhanMar 04, 2023 · 3 years ago
  Unfortunately, wash sales in your cryptocurrency portfolio do not qualify for tax deductions. The IRS considers wash sales as a way to manipulate losses for tax benefits. If you sell a cryptocurrency at a loss and repurchase the same or a substantially identical cryptocurrency within 30 days, the loss is disallowed for tax purposes. It's important to keep accurate records of your cryptocurrency transactions to ensure compliance with tax regulations.
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• Muhammad HuzaifaJan 26, 2024 · 2 years ago
  As a representative of BYDFi, I can confirm that wash sales in your cryptocurrency portfolio are not eligible for tax deductions. The IRS has specific rules regarding wash sales, which apply to all taxpayers. If you sell a cryptocurrency at a loss and repurchase the same or a substantially identical cryptocurrency within 30 days, the loss cannot be claimed as a tax deduction. It's crucial to consult with a tax professional or accountant for personalized advice on your specific tax situation.
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