Can you provide a step-by-step guide on how to calculate wash sale cost basis adjustments for cryptocurrency trades?

1 answers

• Johnston LodbergMay 27, 2022 · 4 years ago
  Certainly! Here's a step-by-step guide on how to calculate wash sale cost basis adjustments for cryptocurrency trades: 1. Identify any wash sale transactions by looking for instances where you sold a cryptocurrency at a loss and repurchased the same or a substantially identical cryptocurrency within 30 days. 2. Determine the cost basis of the cryptocurrency you sold. 3. Add the disallowed loss from the wash sale to the cost basis of the repurchased cryptocurrency. 4. Calculate the adjusted cost basis by subtracting the disallowed loss from the original cost basis. 5. Use the adjusted cost basis to calculate your capital gains or losses. I hope this guide is helpful! If you have any further questions, feel free to ask.
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