What are the tax implications of a partial wash sale in the cryptocurrency market?

1 answers

• Colly wogMay 25, 2024 · 2 years ago
  At BYDFi, we understand that tax implications can be a concern for cryptocurrency investors. When it comes to a partial wash sale in the cryptocurrency market, the tax implications are similar to those of a regular wash sale in traditional securities. The IRS does not specifically address wash sales in the cryptocurrency market, but the general rules for wash sales still apply. If you engage in a partial wash sale, you cannot claim the loss on your tax return. Instead, the loss is added to the cost basis of the newly acquired cryptocurrency. It's important to keep accurate records of your transactions and consult with a tax professional to ensure compliance with tax laws.
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