Crypto Wash Sale Rules Guide: IRS Compliance (2026)
Understand wash sale rules for cryptocurrency: 30-day repurchase restrictions, loss disallowance, and basis adjustment for tax-loss harvesting.
Summary
Wash sale rules apply to crypto losses. This guide explains 30-day restrictions, IRS enforcement trends, and strategies for compliant tax-loss harvesting.
Key Steps
- 1Understand wash sale rule: no repurchase within 30 days before or after loss sale.
- 2Track wash sale violations: disallowed losses add to replacement basis.
- 3Wait 31+ days before repurchasing same crypto after loss realization.
- 4Use different crypto tokens for harvesting: avoid 'substantially identical' issues.
- 5Document all wash sale compliance for IRS audit defense.