“Bitcoin’s slump opens the door to a tax loophole every investor needs to know”
June 8, 2021
“…If you’re a crypto investor down in the dumps, there’s a strategy you can use that might take some of the sting out of your recent losses. It’s called a “wash sale… Let’s say your Bitcoin investment lost you $50,000 a few weeks back, but the gains from your stocks and mutual funds this year earn you $50,000. Your Bitcoin losses would offset the taxes you would otherwise have to pay on your capital gains.
If you’re going to try and use the wash sale rules to your advantage, just make sure you’re not repurchasing too soon after making the sale. The IRS can still prevent you from claiming the tax credit if they think the sale lacks legitimacy. And don’t plan on trying this with Coinbase shares. They play by the same rules as every other stock…”
https://finance.yahoo.com/news/bitcoins-slump-opens-door-tax-185200333.html