{"id":12215,"date":"2021-09-16T23:54:06","date_gmt":"2021-09-16T23:54:06","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/us-lawmakers-propose-to-subject-cryptocurrencies-to-wash-sale-rule\/"},"modified":"2021-09-16T23:54:06","modified_gmt":"2021-09-16T23:54:06","slug":"us-lawmakers-propose-to-subject-cryptocurrencies-to-wash-sale-rule","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/us-lawmakers-propose-to-subject-cryptocurrencies-to-wash-sale-rule\/","title":{"rendered":"US Lawmakers Propose to Subject Cryptocurrencies to Wash Sale Rule"},"content":{"rendered":"<p><strong>A committee of the U.S. House of Representatives has proposed to subject cryptocurrencies to the \u201cwash sale\u201d rule. Since cryptocurrencies are treated as property by the Internal Revenue Service (IRS), they are currently not subject to the wash sale rule. This proposal attempts to close down a big crypto tax loophole.<\/strong><\/p>\n<h2>Crypto Included in New Proposal<\/h2>\n<p>The Committee on Ways and Means, the chief tax-writing committee of the U.S. House of Representatives, <a href=\"https:\/\/waysandmeans.house.gov\/sites\/democrats.waysandmeans.house.gov\/files\/documents\/SubtitleISxS.pdf\">proposed<\/a> to subject cryptocurrencies to the wash sale rule Monday. If adopted, the rules will apply to crypto trades occurring after Dec. 31.<\/p>\n<p>The \u201cwash sales\u201d provision in the bill states:<\/p>\n<p>This section includes commodities, currencies, and digital assets in the wash sale rule, an anti-abuse rule previously applicable to stock and other securities. The wash sale rule in section 1091 prevents taxpayers from claiming tax losses while retaining an interest in the loss asset.<\/p>\n<p>The wash-sale rule was designed to discourage people from selling securities at a loss simply to claim a tax benefit. A wash sale occurs when an individual sells a security at a loss and then purchases that same security or substantially identical securities within 30 days.<\/p>\n<p><!-- growjs zone placement 31 -->    <!-- end of growjs zone placement --> <\/p>\n<p>Shehan Chandrasekera, head of Tax Strategy at crypto tax software firm Cointracker, <a href=\"https:\/\/twitter.com\/TheCryptoCPA\/status\/1437519302614081539\">commented<\/a> that with this wash sale proposal, the committee \u201cis trying to close down a big crypto tax loophole.\u201d He elaborated:<\/p>\n<p>Since cryptocurrencies are treated as property (IRS 2014-21), they are not subject to the wash sale rule. This allows you to harvest losses more aggressively in crypto than in stocks. You don\u2019t have to wait 30 days. Ways &amp; Means Committee is trying to subject crypto to the wash sale rule.<\/p>\n<p>According to Chandrasekera, \u201cthe new rules will not eliminate the tax benefit, it will defer the tax benefit.\u201d<\/p>\n<p><em><strong>What do you think about this new proposal? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Bitcoin News<br \/>\nTaxes, crypto rules, crypto tax rules, IRS, tax rules, wash sale, wash sale rules crypto<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A committee of the U.S. House of Representatives has proposed to subject cryptocurrencies to the \u201cwash sale\u201d rule. Since cryptocurrencies are treated as property by the Internal Revenue Service (IRS), they are currently not subject to the wash sale rule. This proposal attempts to close down a big crypto tax loophole. Crypto Included in New&hellip;<\/p>\n","protected":false},"author":0,"featured_media":12216,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-12215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12215"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=12215"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12215\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/12216"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=12215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=12215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=12215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}