The United States Government, at all levels, is attacking Cryptocurrency. The IRS has held that Cryptocurrency is property and not a security. But Congress is seeking to eliminate a “loop hole” created by that designation. The wash sale rule applies to “stocks & securities” and prevents individuals from realizing a capital loss if they buy back a “substantially similar” stock or security within 30 days.
Congress is also looking to tax each and every trade or exchange in Cryptocurrency. The “government feels that an activity that generates income should be taxed.”
Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649