Bed and breakfasting: what it means for crypto tax
Bed and breakfasting is the UK term for selling and repurchasing an asset within a short window to realise a loss while keeping the position. Matching rules require such repurchases to be paired with the sale, preventing an artificial loss.
General information, not tax advice. Crypto tax rules differ by country and change over time, verify against your country's guidance or a qualified advisor.
An example
Sell and rebuy the same coin within the matching window and the rules pair the two, denying the loss.
Why it matters for your tax
It is the UK counterpart to a wash-sale rule, and the same lesson applies: the repurchase timing is what decides whether a harvested loss actually lands.
CryptaTax handles this automatically across your wallets and exchanges, so the concept is applied consistently without you tracking it by hand. Try the crypto tax calculator →
Related terms
See the full crypto tax glossary for every term, or the crypto tax guides for how they fit together.
FAQ
Bed and breakfasting is the UK term for selling and repurchasing an asset within a short window to realise a loss while keeping the position. Matching rules require such repurchases to be paired with the sale, preventing an artificial loss.
See the crypto tax glossary for related terms, or the crypto tax guides for worked examples. Rules differ by country, so check your country's rules.