How does Robinhood handle wash sale losses for cryptocurrency trades?

3 answers

• Aurora DingNov 15, 2021 · 4 years ago
  When it comes to wash sale losses in cryptocurrency trades, Robinhood follows the same rules as the IRS. If you sell a cryptocurrency at a loss and then repurchase the same or a substantially identical cryptocurrency within 30 days, it will trigger a wash sale. In this case, Robinhood will not allow you to claim the loss for tax purposes. It's important to keep track of your trades and be aware of the wash sale rules to avoid any unexpected tax consequences.
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• Oliver BeresfordSep 03, 2022 · 3 years ago
  Robinhood handles wash sale losses for cryptocurrency trades by not allowing users to claim the loss for tax purposes if they trigger a wash sale. This means that if you sell a cryptocurrency at a loss and then repurchase the same or a substantially identical cryptocurrency within 30 days, you won't be able to deduct the loss from your taxable income. It's important to be mindful of this rule and consider the potential tax implications before making any trades on Robinhood.
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• Olalekan AjirotutuNov 29, 2021 · 4 years ago
  As an expert in the field, I can confirm that Robinhood does not allow users to claim wash sale losses for cryptocurrency trades. This is in line with the IRS regulations, which consider wash sales as taxable events. If you trigger a wash sale by selling a cryptocurrency at a loss and repurchasing the same or a substantially identical cryptocurrency within 30 days, you won't be able to deduct the loss for tax purposes. It's crucial to keep accurate records of your trades and consult with a tax professional to understand the implications of wash sales on your tax liability.
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