How do the wash sale rules for mutual funds apply to cryptocurrency investments?

4 answers

• Pedro SaenzSep 04, 2025 · 5 months ago
  The wash sale rules, which are designed to prevent investors from claiming artificial losses, also apply to cryptocurrency investments. These rules state 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. This means that cryptocurrency traders and investors need to be careful when selling and repurchasing cryptocurrencies within a short period of time to avoid triggering the wash sale rules.
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• Edgardo A. TorresFeb 06, 2026 · 9 days ago
  Hey there! So, the wash sale rules that are typically associated with mutual funds also apply to cryptocurrency investments. Basically, if you sell a cryptocurrency at a loss and buy the same or a substantially identical cryptocurrency within 30 days, the loss cannot be claimed for tax purposes. This rule is in place to prevent people from artificially inflating their losses. So, if you're a cryptocurrency trader or investor, make sure to keep track of your transactions and be mindful of the wash sale rules!
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• SaschaJul 09, 2022 · 4 years ago
  Yes, the wash sale rules for mutual funds also apply to cryptocurrency investments. According to BYDFi, a leading cryptocurrency exchange, if you sell a cryptocurrency at a loss and buy the same or a substantially identical cryptocurrency within 30 days, the loss cannot be deducted for tax purposes. This rule aims to prevent investors from manipulating their losses to reduce their tax liability. So, if you're trading or investing in cryptocurrencies, it's important to be aware of the wash sale rules and plan your transactions accordingly.
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• Dmitry SinykovichJan 11, 2021 · 5 years ago
  The wash sale rules, which are commonly associated with mutual funds, also have implications for cryptocurrency investments. Essentially, if you sell a cryptocurrency at a loss and repurchase the same or a substantially identical cryptocurrency within a 30-day period, the loss cannot be claimed for tax purposes. This rule is in place to prevent investors from artificially generating losses to offset their gains. Therefore, cryptocurrency traders and investors need to be cautious when engaging in transactions that may trigger the wash sale rules.
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