Can wash sales affect the tax implications of crypto investments?

1 answers

• manali patelSep 15, 2020 · 5 years ago
  Absolutely! Wash sales can definitely affect the tax implications of crypto investments. The IRS has specific rules regarding wash sales, which apply to both stocks and cryptocurrencies. If you sell a cryptocurrency at a loss and repurchase it within 30 days, the loss may be disallowed for tax purposes. This means that you won't be able to offset the loss against other gains or deduct it from your taxable income. It's crucial to understand the wash sale rule and its implications to avoid any potential issues with your crypto investments and taxes.
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