Calculate whether your crypto loss may be disallowed under wash sale rules. Check if repurchasing within 30 days affects your capital loss deduction.
The wash sale rule disallows a tax loss if you repurchase a substantially identical asset within 30 days before or after the sale. Traditionally, this rule applied only to securities (stocks and bonds) and did not cover cryptocurrency, which the IRS classifies as property. This meant crypto traders could sell at a loss and immediately rebuy to lock in a tax deduction — a strategy known as tax-loss harvesting.
However, recent tax legislation has extended wash sale rules to cover digital assets starting in 2025. This means that selling crypto at a loss and repurchasing the same cryptocurrency within the 61-day wash sale window (30 days before through 30 days after the sale) may result in the loss being disallowed for tax purposes.
This calculator helps you determine whether a crypto transaction triggers the wash sale rule. Enter your sale details and any repurchases within the 30-day window to see whether part or all of your loss may be disallowed and added to the cost basis of the replacement shares.
With the expansion of wash sale rules to crypto, traders can no longer freely harvest losses and immediately rebuy. This calculator helps you check whether a planned or completed transaction falls within the wash sale window. Understanding the rule prevents unpleasant surprises when filing taxes and helps you time repurchases to stay outside the 30-day window.
Loss = Cost Basis − Proceeds (if negative, it's a gain, not a loss) If repurchase occurs within 30 days: Disallowed Loss = Loss × (Repurchase Qty / Sold Qty) New Basis of Replacement = Repurchase Price + Disallowed Loss
Result: $2,000 loss disallowed
You sold crypto for $8,000 with a $10,000 basis, creating a $2,000 loss. You repurchased within 5 days for $8,000. Since the repurchase is within 30 days and covers the full amount, the entire $2,000 loss is disallowed. Your new cost basis becomes $8,000 + $2,000 = $10,000.
The wash sale rule was created to prevent taxpayers from claiming artificial losses by selling an asset and immediately rebuying it. The 30-day window ensures that the economic position hasn't meaningfully changed. With the rule now covering crypto, traders must plan their tax-loss harvesting more carefully.
Tax-loss harvesting is still possible with crypto, but you must wait 31 days before repurchasing the same asset. During this waiting period, you could invest in a different cryptocurrency to maintain market exposure, or simply hold cash and rebuy after the window closes.
Track all purchases within 30 days of any loss sale. Crypto tax software can automatically detect wash sales across exchanges and wallets. If a wash sale is triggered, ensure the disallowed loss is properly added to the replacement asset's cost basis.
As of 2025, yes. New legislation extended the wash sale rule to digital assets. Previously, crypto was exempt because it was classified as property, not a security. Traders should now follow the same 30-day repurchase restrictions that apply to stocks.
The disallowed loss is added to the cost basis of the replacement crypto. This means you don't permanently lose the deduction — it is deferred until you eventually sell the replacement without triggering another wash sale. The adjusted basis will produce a larger loss or smaller gain on the future sale.
Yes. The wash sale rule applies to substantially identical assets. Bitcoin and Ethereum are different assets, so selling BTC at a loss and buying ETH within 30 days should not trigger the rule. However, buying wrapped BTC (WBTC) after selling BTC may be considered substantially identical.
No. The wash sale rule only applies to losses. If you sell crypto at a gain and rebuy immediately, the gain is fully taxable regardless of timing. The rule is specifically designed to prevent artificial loss harvesting.
The wash sale window is 30 days before the sale through 30 days after the sale, creating a total window of 61 days. If you buy substantially identical crypto anywhere in this window, the loss from the sale may be disallowed.
If you sold 2 BTC at a loss but only repurchased 1 BTC within 30 days, only half the loss is disallowed. The disallowance is proportional to the quantity repurchased relative to the quantity sold.