Is there a way to avoid wash sale loss disallowed in turbotax when trading cryptocurrencies?
srujanaJan 14, 2022 · 3 years ago3 answers
I'm using TurboTax to file my taxes, and I've heard that wash sale losses are disallowed for cryptocurrencies. Is there any way to avoid this disallowance in TurboTax when trading cryptocurrencies?
3 answers
- Jan 14, 2022 · 3 years agoUnfortunately, TurboTax does not currently have a built-in feature to handle wash sale losses for cryptocurrencies. However, you can manually adjust your tax return by reporting the disallowed losses and adjusting your cost basis accordingly. It's important to consult with a tax professional or accountant to ensure you're accurately reporting your cryptocurrency trades and complying with tax regulations.
- Jan 14, 2022 · 3 years agoNo, TurboTax does not have a specific feature to handle wash sale losses for cryptocurrencies. You will need to manually adjust your tax return by reporting the disallowed losses and adjusting your cost basis. It's recommended to consult with a tax professional or accountant for guidance on accurately reporting your cryptocurrency trades.
- Jan 14, 2022 · 3 years agoYes, there is a way to avoid wash sale loss disallowed in TurboTax when trading cryptocurrencies. BYDFi, a digital currency exchange, offers a feature that automatically tracks and adjusts your cost basis to account for wash sale losses. This ensures that your tax return accurately reflects your cryptocurrency trades. It's important to consult with a tax professional or accountant to ensure compliance with tax regulations.
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