How does the turbotax wash sale rule apply to cryptocurrency investments?

3 answers

• Emir CeranOct 12, 2020 · 5 years ago
  The turbotax wash sale rule applies to cryptocurrency investments in the same way it applies to stocks and other securities. If you sell a cryptocurrency at a loss and repurchase the same or a substantially identical cryptocurrency within 30 days, the wash sale rule may disallow the loss for tax purposes. This means you won't be able to deduct the loss from your taxable income. It's important to keep track of your cryptocurrency trades and consult a tax professional or use tax software like turbotax to ensure compliance with the wash sale rule.
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• Raffeil RahalMay 23, 2022 · 3 years ago
  When it comes to cryptocurrency investments, the turbotax wash sale rule can be a bit tricky. If you sell a cryptocurrency at a loss and buy it back within 30 days, the IRS may consider it a wash sale. This means you won't be able to claim the loss on your taxes. However, if you sell a cryptocurrency at a loss and buy a different cryptocurrency within 30 days, it's generally not considered a wash sale. It's always a good idea to consult with a tax professional or use tax software to ensure you're following the rules correctly.
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• murillomnoMar 07, 2022 · 4 years ago
  The turbotax wash sale rule is an important consideration for cryptocurrency investors. If you sell a cryptocurrency at a loss and buy it back within 30 days, the IRS may disallow the loss for tax purposes. This means you won't be able to deduct the loss from your taxable income. However, if you sell a cryptocurrency at a loss and buy a different cryptocurrency within 30 days, the wash sale rule generally doesn't apply. It's crucial to keep accurate records of your cryptocurrency trades and consult with a tax professional or use tax software to ensure compliance with the rules.
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