How does a wash sale affect the cost basis of my bitcoin investment?

7 answers

• ozanakyolAug 04, 2025 · 3 months ago
  A wash sale occurs when you sell a security, such as bitcoin, at a loss and then repurchase the same or a substantially identical security within 30 days. This triggers a wash sale rule, which disallows the loss for tax purposes. The cost basis of your bitcoin investment is adjusted to include the disallowed loss, effectively increasing your cost basis. This means that when you eventually sell the bitcoin, your gain or loss will be calculated based on the adjusted cost basis.
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• Cheyenne KellyMay 04, 2024 · 2 years ago
  Hey there! So, a wash sale is when you sell your bitcoin at a loss and buy it back within a short period of time. This rule is in place to prevent people from taking advantage of tax deductions. When you have a wash sale, the loss you incurred is not recognized for tax purposes. Instead, it's added to the cost basis of the repurchased bitcoin. This means that when you sell the bitcoin again, your gain or loss will be calculated based on the adjusted cost basis.
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• SubhanFeb 20, 2025 · 9 months ago
  A wash sale can have an impact on the cost basis of your bitcoin investment. When you sell bitcoin at a loss and then repurchase it within 30 days, the loss is disallowed for tax purposes. This disallowed loss is added to the cost basis of the repurchased bitcoin. So, when you eventually sell the bitcoin, your gain or loss will be calculated based on the adjusted cost basis. It's important to be aware of wash sales and their implications for tax purposes.
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• Ploug KjellerupApr 30, 2021 · 5 years ago
  A wash sale can affect the cost basis of your bitcoin investment. When you sell bitcoin at a loss and buy it back within a short period of time, the loss is not recognized for tax purposes. Instead, it's added to the cost basis of the repurchased bitcoin. This means that when you sell the bitcoin again, your gain or loss will be calculated based on the adjusted cost basis. It's a rule designed to prevent people from manipulating their tax deductions.
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• HemanthOct 14, 2021 · 4 years ago
  A wash sale can have an impact on the cost basis of your bitcoin investment. When you sell bitcoin at a loss and repurchase it within 30 days, the loss is disallowed for tax purposes. This disallowed loss is then added to the cost basis of the repurchased bitcoin. So, when you eventually sell the bitcoin, your gain or loss will be calculated based on the adjusted cost basis. It's important to keep track of wash sales and understand their implications for your tax situation.
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• RaphaDec 03, 2022 · 3 years ago
  A wash sale can affect the cost basis of your bitcoin investment. When you sell bitcoin at a loss and buy it back within a short period of time, the loss is not recognized for tax purposes. Instead, it's added to the cost basis of the repurchased bitcoin. This means that when you sell the bitcoin again, your gain or loss will be calculated based on the adjusted cost basis. It's a rule put in place to prevent people from taking advantage of tax deductions.
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• James TranDec 20, 2020 · 5 years ago
  A wash sale can have an impact on the cost basis of your bitcoin investment. When you sell bitcoin at a loss and then repurchase it within 30 days, the loss is disallowed for tax purposes. This disallowed loss is added to the cost basis of the repurchased bitcoin. So, when you eventually sell the bitcoin, your gain or loss will be calculated based on the adjusted cost basis. It's important to be aware of wash sales and their implications for tax purposes. Please note that this information is provided for educational purposes only and should not be considered as tax advice. For specific tax advice, consult a professional tax advisor.
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