House Democrats’ plan would close tax loophole used by crypto investors. - CNBC
By comparison, stock investors aren't allowed to buy an identical or similar security within 30 days before or 30 days after a sale without triggering penalties.Subjecting crypto and other assets to wash sale rules would raise $16.8 billion over a decade, according toDemocrats are considering to raise money for climate investments and a significant expansion of the U.S. social safety net, expected to cost up to $3.5 trillion.
Overall corporate and individual tax reforms outlined Monday would raise almost $2.1 trillion over a decade. If crypto is ultimately subject to wash-sale rules, investors may be able to speedily establish positions in a different coin without getting tripped up. Cryptocurrencies are dissimilar enough that selling bitcoin and then quickly buying etherum, for example, likely wouldn't violate the rules, according to Ivory Johnson, a certified financial planner and founder of Delancey Wealth Management in Washington, D.C.
"The similarities start and end with the coins being exchanged on a blockchain. Using that logic, stocks traded on an exchange, NYSE or otherwise, are not considered one and the same either," Johnson said. "Stated plainly, bitcoin is to ether what Gold is to Visa — they're not 'substantially similar' and should not in my opinion trigger the wash sale rule."
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