Wash Sale
A tax rule that disallows a loss deduction if you repurchase the same or substantially identical asset within 30 days.
Explained Simply
The wash sale rule in traditional finance prevents investors from selling at a loss for a tax deduction and immediately buying back the same asset. As of 2025, crypto is not explicitly subject to wash sale rules in the US, though this may change. Some tax professionals recommend treating crypto as subject to wash sale rules to be conservative. Always consult a qualified tax professional for your specific situation, as regulations vary by jurisdiction and are evolving rapidly.
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This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for advice specific to your situation.