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RE: "0.04% Of IRS Filers Reporting Bitcoin Gains FUD" - File For An Extension If You Need To

in #taxes7 years ago

Only tokens treated as securities are subject to wash sale.

Curious what you mean by this. Isn't fungibility the basic thing you need for wash sale rules to apply? Why does security status (which is only ambiguously defined anyway) have anything to do with it?

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Hi @biophil, hope this helps:

The "wash sale" rule applies to stock or securities by design of the Code Section (not just any item of property). Also, there are a certain rules that would apply only to cryptocurrencies that are deemed "securities" for purposes of the Internal Revenue Code. This could all change in the future when more guidance is issued, however I highlighted a few of these nuances in an old article: https://steemit.com/bitcoin/@cryptotax/tax-implications-of-trading-ico-tokens-impacts-to-2017-tax-season

I see, thanks. I'll take a look at the other article!