Is wash sale rule applicable to cryptocurrency transactions?

8 answers

• JiteshOnlineOct 25, 2020 · 5 years ago
  Yes, the wash sale rule can be applicable to cryptocurrency transactions. The IRS has not specifically addressed the application of the wash sale rule to cryptocurrencies, but the general definition of securities can be interpreted to include cryptocurrencies. Therefore, if you sell a cryptocurrency at a loss and repurchase the same or a substantially identical cryptocurrency within 30 days, the loss may be disallowed for tax purposes.
  439

  220
• SilberspechtFeb 24, 2022 · 4 years ago
  No, the wash sale rule does not apply to cryptocurrency transactions. Cryptocurrencies are not considered securities by the IRS, and the wash sale rule specifically applies to securities. Therefore, if you sell a cryptocurrency at a loss and repurchase the same or a substantially identical cryptocurrency within 30 days, the loss can still be deducted for tax purposes.
  370

  124
• Triệu Mẫn TràApr 05, 2024 · 2 years ago
  According to BYDFi, a leading cryptocurrency exchange, the wash sale rule can be applicable to cryptocurrency transactions. It is important for cryptocurrency traders to be aware of this rule and consider its implications when engaging in trading activities. The IRS may provide further guidance on the application of the wash sale rule to cryptocurrencies in the future.
  371

  93
• Agata RichtaJan 19, 2022 · 4 years ago
  The wash sale rule is not applicable to cryptocurrency transactions. Cryptocurrencies are not classified as securities by the SEC, and the wash sale rule specifically applies to securities. Therefore, cryptocurrency traders do not need to worry about the wash sale rule when buying and selling cryptocurrencies.
  311

  63
• Bryan WarnerJan 28, 2025 · a year ago
  Yes, the wash sale rule can be applied to cryptocurrency transactions. Although cryptocurrencies are not considered securities by the SEC, the IRS has the authority to interpret the definition of securities and apply the wash sale rule to cryptocurrencies. It is advisable for cryptocurrency traders to consult with a tax professional to understand the potential implications of the wash sale rule on their transactions.
  420

  70
• Samuel KlimkoJun 18, 2023 · 3 years ago
  No, the wash sale rule does not apply to cryptocurrency transactions. Cryptocurrencies are a unique asset class and should not be subject to regulations designed for traditional securities. The IRS should provide clear guidance on the tax treatment of cryptocurrencies instead of applying existing rules in an ambiguous manner.
  327

  47
• Neel AndholeJul 11, 2024 · 2 years ago
  The application of the wash sale rule to cryptocurrency transactions is still a topic of debate among tax experts. While some argue that the rule should be applied to cryptocurrencies, others believe that cryptocurrencies should be treated differently due to their unique characteristics. It remains to be seen how the IRS will address this issue in the future.
  361

  46
• lazynoaFeb 16, 2023 · 3 years ago
  The wash sale rule can be applicable to cryptocurrency transactions, but its enforcement may be challenging. Cryptocurrencies are decentralized and traded on various platforms, making it difficult for tax authorities to track and enforce the wash sale rule effectively. As the cryptocurrency market continues to evolve, it is important for regulators to develop clear guidelines on the application of existing tax rules to cryptocurrencies.
  440

  49