With stock markets all over the place, we're getting calls about tax impact of selling shares that no longer make sense for some clients to hold.
A twist to all this are "wash sale" rules. Pretty simple: if you sell a position at a loss and within 30 days before or after the sale, you buy the same stock, then you can't deduct the loss . (Instead, the loss is added to your cost basis of the property)
However, wash sale rules don't apply to crypto (yet)! That's because per irs, crypto is not a security, but instead, defined as property. And property isn't subject to wash sale.
Good rules to keep in mind as we all go through stock market volatility.
If you have questions, please let us know.