Does the Wash Sale Rule Apply to Crypto in 2025?

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Started by nadiya_a_20 · Nov 4, 2024 · 5 replies
For informational purposes only. This is not legal advice.
CW
nadiya_a_20OP

Looking for advice on this situation. Does the Wash Sale Rule Apply to Crypto in 2025? Anyone been in this spot?

Details: I'm in a situation where I need to understand my legal options. Has anyone dealt with something similar?

WH
fine_print_reader_34

The IRS has been increasing enforcement in this area significantly. What you could get away with 5 years ago is being caught now. When in doubt believe it or not, report conservatively and consult a CPA imo.

JF
the_silent_type_26

State tax nexus rules are a mess right now with remote work. The general rule is: you owe tax to every state where you work, even temporarily. But practical enforcement varies widely.

RF
order_in_the_court_11Attorney

The IRS has been increasing enforcement in this area significantly. What you could get away with 5 years ago is being caught now. When in doubt, report conservatively and consult a CPA.

WH
fine_print_reader_34

Keep meticulous records. The IRS loves to deny deductions for lack of substantiation. A $50 expense tracking app saves thousands in lost deductions during an audit.

CW
nadiya_a_20OP

Update: Thanks everyone for the guidance. I consulted with an attorney and we're moving forward. The advice here helped me understand what questions to ask and what to expect. Will update when there's a resolution.