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Author: Admin | 2025-04-28
Wash-sale rule. Keep in mind that you'll be less likely to attract the attention of the IRS if you purchase something with a substantial difference.Invest in an EFT. Let's say that you sold a tech stock and sustained a loss. Another strategy to avoid the wash-sale rule would be to invest in a tech EFT instead of buying stock from a single company.Buy substantially different stock. The final option is to invest your money from the sale that triggered the capital loss into a stock from a different industry or sector. The IRS will not be concerned if you sell manufacturing stock at a loss and purchase tech stock with the money. While the rules around "substantial" similarities can be complex, this option leaves no room for confusion.You may also want to consider working with a qualified tax professional to help you reduce your taxable capital gains.Let Us Help You Minimize Your Crypto Tax BillThe wash-sale rule is a complex feature of the tax code, and while it doesn't currently apply to many cryptocurrency transactions, it could change. Keep in mind that even if the law does change, there are tactics you can use to minimize your tax liability and harvest losses on your taxes.Do you need help from a cryptocurrency tax professional?
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