Lawmakers renew push to axe a lucrative tax loophole for crypto investors

A group of lawmakers introduced legislation to apply wash sale rules to cryptocurrency transactions, closing a tax treatment that has allowed crypto investors to deduct losses while maintaining their holdings. Under current tax law, wash sale rules prevent investors in stocks and bonds from claiming losses on sales if they repurchase substantially identical assets within 30 days before or after the sale. The Internal Revenue Service has not extended these rules to crypto assets, creating a difference in how gains and losses are taxed across asset classes.

Next story