Is it possible to offset wash sale deferred losses with gains from cryptocurrency trading?

3 answers

• Traxx M14Oct 09, 2022 · 3 years ago
  Yes, it is possible to offset wash sale deferred losses with gains from cryptocurrency trading. According to the IRS, wash sales occur when you sell or trade stocks or securities at a loss and within 30 days before or after the sale, you acquire substantially identical stocks or securities. However, cryptocurrency is treated as property for tax purposes, not as stocks or securities. Therefore, gains from cryptocurrency trading can be used to offset wash sale deferred losses from stock trading.
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• Alam hussainApr 12, 2025 · 7 months ago
  Absolutely! The IRS rules regarding wash sales only apply to stocks and securities, not to cryptocurrency. Since cryptocurrency is considered property, you can use gains from cryptocurrency trading to offset wash sale deferred losses from stock trading. This can be a great strategy to minimize your tax liability and maximize your overall profits.
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• Scarborough BekkerAug 12, 2025 · 3 months ago
  Yes, you can offset wash sale deferred losses with gains from cryptocurrency trading. However, it is important to consult with a tax professional or accountant to ensure compliance with tax laws and regulations. They can provide specific guidance based on your individual circumstances and help you optimize your tax strategy. Remember to keep accurate records of your trades and transactions to support your tax filings.
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