Wash sale: what it means for crypto tax
A wash sale is selling an asset at a loss and quickly rebuying it to claim the loss while keeping the position. Some countries disallow the loss in these cases; where the rule applies, the denied loss is deferred into the rebought asset's basis.
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 a coin at a loss and rebuy it the next day, and a wash-sale rule may disallow the loss for now.
Why it matters for your tax
This is the single most important timing trap in tax-loss harvesting: rebuying too soon where a rule applies can quietly cancel the benefit you were after.
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
A wash sale is selling an asset at a loss and quickly rebuying it to claim the loss while keeping the position. Some countries disallow the loss in these cases; where the rule applies, the denied loss is deferred into the rebought asset's basis.
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.