Is the 3-day rule in stocks applicable to buying and selling cryptocurrencies?

3 answers

• Dec 27, 2021 · 3 years ago
  The 3-day rule in stocks refers to the requirement that if you sell a stock and then repurchase the same or a substantially identical stock within a 3-day period, you cannot claim a tax loss on the sale. However, this rule does not directly apply to cryptocurrencies. Cryptocurrencies are treated as property by the IRS, and the 3-day rule is specific to stocks. Therefore, you can buy and sell cryptocurrencies within a 3-day period without any tax implications.
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• Dec 27, 2021 · 3 years ago
  No, the 3-day rule in stocks does not apply to buying and selling cryptocurrencies. Cryptocurrencies are not subject to the same regulations and tax rules as stocks. While the 3-day rule is designed to prevent tax loss harvesting in stocks, it does not have a direct equivalent in the world of cryptocurrencies. However, it's important to note that tax regulations for cryptocurrencies vary by country, so it's always a good idea to consult with a tax professional.
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• Dec 27, 2021 · 3 years ago
  The 3-day rule in stocks is not directly applicable to buying and selling cryptocurrencies. However, it's worth mentioning that some cryptocurrency exchanges, like BYDFi, have their own rules and restrictions when it comes to trading. For example, BYDFi may impose a waiting period before you can sell a cryptocurrency that you have just purchased. This waiting period is designed to prevent short-term speculative trading and promote a more stable market. So, while the 3-day rule itself may not apply, it's important to be aware of any specific rules set by the exchange you are using.
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