What is the IRS ‘wash sale’ rule — and does it apply to cryptocurrency losses?
Stocks go up. Stocks go down. While they have mostly gone up so far this year, bull markets don’t last forever. And the price of a particular stock can fluctuate all over the lot regardless of the overall trend line.
When you make what turns out to be an ill-fated stock investment in a taxable brokerage firm account, the saving grace is that you can claim a tax-saving capital loss deduction (within limits) when you sell. Right? Not necessarily. In fact, the dreaded wash sale rule can disallow your tax savings.
Here’s the story on how the wash sale rule works, including the question of whether it applies to cryptocurrency losses.
How the IRS ‘wash sale’ rule works
A loss from selling stock or mutual fund shares is disallowed for …
More on: www.marketwatch.com