Tax Guy: How does the IRS ‘wash sale’ rule work — and does it apply to cryptocurrency losses?

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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.


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