Capital Loss vs Wash Sale Rule

Quick comparison to help you distinguish these two crypto terms.

Capital Loss
beginner
fundamentals

A financial loss realised when a cryptocurrency is sold or disposed of for less than its original cost basis, which can be used to offset capital gains and reduce tax liability.

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Wash Sale Rule
intermediate
risk

A US tax rule that disallows a capital loss deduction on a security sold at a loss if the same or substantially identical security is repurchased within 30 days before or after the sale.

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