Crypto Wash Sale Calculator 2026
Prepare for 2026 tax filing by identifying potentially disallowed crypto losses. Although the IRS "Wash Sale Rule" (Section 1091) traditionally applies to stocks, the 2026 fiscal landscape anticipates stricter crypto regulations. Use this tool to calculate your adjusted cost basis and deferred losses if you repurchase a "substantially identical" asset within 30 days of a sale at a loss.
Calculation Summary
Understanding Crypto Wash Sales for the 2026 Tax Year
The landscape of cryptocurrency taxation has undergone significant transformations heading into 2026. For years, crypto investors enjoyed a loophole where the "Wash Sale Rule"—a regulation preventing taxpayers from claiming a loss on a security if they buy a substantially identical one within 30 days—did not explicitly apply to digital assets because they were classified as "property" rather than "securities." However, legislative updates and IRS clarifications have moved the needle closer to parity with traditional equities.
How to Use This Calculator
This tool is designed to help you navigate the complexities of disallowed losses. To get an accurate result, you must input your sale price, your original cost basis (what you originally paid for the asset), and the price at which you repurchased the asset. The calculator will automatically determine if a loss occurred and how much of that loss must be added to your new cost basis rather than being deducted immediately from your 2026 taxes.
The 30-Day Rule Explained
The core of the wash sale rule is the 61-day window: 30 days before the sale, the day of the sale, and 30 days after the sale. If you buy the same cryptocurrency (e.g., selling BTC at a loss and buying BTC back) within this window, the IRS considers the transaction a "wash." You haven't truly exited your position; you've merely attempted to manufacture a tax deduction.
Why These Calculations Matter
Failing to account for wash sales can lead to significant underpayment penalties and audits. By using this calculator, you can effectively plan your "tax-loss harvesting" strategies. If you want to claim a loss, you must ensure you do not repurchase the asset within the restricted timeframe. Alternatively, if you do repurchase, our calculator helps you track your Adjusted Cost Basis, ensuring you pay less tax in the future when you eventually sell the asset for good.
Strategies for 2026 Filing
- Wait 31 Days: The simplest way to avoid the rule is to wait at least 31 days before repurchasing the same asset.
- Switch Assets: While "substantially identical" is a grey area in crypto, selling Bitcoin for a loss and buying Ethereum is generally not considered a wash sale.
- Track Every Micro-transaction: With automated trading bots, you might trigger hundreds of tiny wash sales without knowing it. Our calculator simplifies this aggregation.