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Many people sold BTC at $14k+ and then bought back in at 10k, 5k, etc. If they didn't sell again for all of 2018 they'd only have "realized gains" and no realiz

Many people sold BTC at $14k+ and then bought back in at 10k, 5k, etc. If they didn't sell again for all of 2018 they'd only have "realized gains" and no realized loses. So on paper they'd have only have gains, as the IRS doesn't recognize the market value of your current holdings.

gruez 8y ago
Can't they do a wash sale to create losses? That's how tax loss harvesting works.
- andrethegiant 8y ago
  Not an expert, but afaik you'd have to separate the buyback by 1 month from the wash sale for it to be valid/legal. You'd be kicking yourself if the price skyrocketed during that window. Edit: https://help.cointracker.io/taxes/us-taxes/do-wash-sales-apply-to-cryptocurrency https://help.cointracker.io/taxes/us-taxes/do-wash-sales-app...
  - xur17 8y ago
    > There is some debate as to whether wash sales apply to cryptocurrency sales, however the IRS specifically states that wash sales only apply to stocks and securities. Since the IRS has also issued guidance that cryptocurrencies are property, CoinTracker does not calculate/apply wash sales.
Thorrez 8y ago
Whether they bought back in doesn't make a difference. If you sell BTC, that's a taxable event.