Harvest investment losses, including crypto
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When an investment is down, selling it locks in a loss you can use on your taxes. Losses offset your capital gains first, then up to $3,000 of other income a year, and anything left over carries forward to future years.
You can stay invested by buying something similar, just not the same investment within 30 days before or after the sale, or the loss is disallowed under the wash-sale rule.
How it works
Selling investments that are down lets the loss offset gains, plus up to $3,000 of other income a year, with the rest carried forward. The wash-sale rule stops you buying the same stock back within 30 days; it currently doesn’t apply to crypto.
What makes it hold up
- The sale date and cost basis of each lot
- Anything similar bought within 30 days before or after
- Losses carried forward from earlier years
Risks
Low. A bill moving through Congress would apply the wash-sale rule to crypto sold after September 14, 2026 if it passes, so check its status before buying back. Losses in IRAs and Roths don’t count.
Questions to ask your CPA
- Which of my losses are worth taking this year?
- Do I have gains this year to offset?
Common questions
What is the wash-sale rule?
If you buy the same or a substantially identical investment within 30 days before or after selling at a loss, the loss is postponed. Buying it in your IRA or your spouse's account during that window counts too.
Does the wash-sale rule apply to crypto?
Not under current law. A bill in Congress would apply it to crypto sold after September 14, 2026 if it passes, so check its status before buying back.
How long do unused losses last?
For individuals, unused capital losses carry forward until they're used, with no expiration.
Do losses in my IRA or 401(k) count?
No. Only losses in taxable accounts can be harvested.
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Education, not advice. Tax law changes and every situation is different, so confirm the details with your CPA or tax advisor before acting. This page was last checked against tax law as of October 2026, including the 2025 tax law, in October 2026.