GlossaryAdvanced
Wash Sale Rule
A general tax rule concept that can disallow a loss if a substantially similar asset is quickly repurchased.
A wash sale rule, as commonly applied in traditional securities tax law, can disallow claiming a tax loss if a substantially similar asset is sold and then repurchased within a short window around the sale.
Whether and how this concept applies to crypto specifically varies by jurisdiction and has been a genuinely evolving area of tax policy — this is general education, not personalized tax advice.
Examples
- A wash sale rule, where applicable, can disallow a tax loss from a quick sell-and-repurchase of a similar asset.
- Whether wash sale rules apply to crypto specifically depends on jurisdiction-specific, evolving tax policy.