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Crypto & Digital Assets

Crypto Tax-Loss Harvesting (No Wash Sale Rule)

Sell crypto at a loss and rebuy the same asset immediately — wash sale doesn't apply.

Overview

IRC §1091 wash-sale rule applies to 'stocks and securities' — crypto is currently treated as property, NOT a security, so you can sell BTC at a loss and rebuy it 60 seconds later, keeping your economic exposure while banking a capital loss. Offset unlimited capital gains + $3K/yr ordinary income. Congress has repeatedly proposed closing this loophole — use it while it's open.

Best fit
Anyone holding crypto with unrealized lossesActive tradersThose needing offsetting gains
Estimated impact
Convert paper losses into $3K–$50K+ of realized tax offset

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

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