What is a wash sale?
A wash sale (also called a disallowed wash sale) occurs when you sell a stock at a loss and buy substantially identical stock within 30 days before or after the sale. If this applies to you and you received a Form 1099-B or consolidated 1099, the wash sale is usually reported on Form 1099-B, Box 1g, when the purchase and sale happened in the same investment account.
Wash sale rules generally don't apply to cryptocurrency unless the asset is a tokenized security treated as a stock.
Example: You sell 30 shares of XYZ Corporation at a loss on March 2, 2025 and you buy 30 shares of XYZ Corporation on March 10, 2025. Because the purchase occurred within 30 days after the sale, the loss would typically be considered a wash sale, and the loss would be disallowed until you sell your replacement XYZ shares outside of the 30-day window.
Wash sale rules generally don't apply to cryptocurrency unless the asset is a tokenized security treated as a stock.
Example: You sell 30 shares of XYZ Corporation at a loss on March 2, 2025 and you buy 30 shares of XYZ Corporation on March 10, 2025. Because the purchase occurred within 30 days after the sale, the loss would typically be considered a wash sale, and the loss would be disallowed until you sell your replacement XYZ shares outside of the 30-day window.
