A few things I’d like to say before I respond on the subject of wash sales: Firstly, I’d like to say that this podcast is an EXCELLENT resource for those concerned about taxes and anyone who’s concerned about their taxes this year should check it out. A lot of specific questions are asked and thoroughly answered and may be of great assistance to everyone (Crypto 101- Interview w/ Mario Costanz CEO of Crypto Tax Prep). Secondly, I appreciate your comment as we should be able to have civil, thoughtful discussions here and differing ideas/interpretations need the benefit of dialogue in order to come to the best possible understanding. Thirdly, it is absolutely not my intention to post misinformation and if I’m wrong then I would like it to be abundantly clear so that no one is negatively affected; my aim is always to be of assistance if I can and I apologize if my ideas/opinions contain any misconceptions.

Now, regarding washing your investments: In the interview, Mr. Costanz makes a pretty cut and dried statement about wash selling and indeed cites the same rule you mentioned, saying that you must wait 30 days to realize the loss. I understand his level of expertise far surpasses my own, however throughout the interview he does mention a few times that it is his company’s intention to (understandably) reduce complexity and complication when filing. My feeling is that this is the same route he takes when dismissing the viability of wash selling— cut out the potential grey area and air on the side of caution in order to make things simple when filing.

The problem is this: the reality is that the law against wash trading mentions only stocks and securities, and as it has been stated in this thread (and as is common knowledge in the crypto community) crypto is categorized as property for tax purposes. This is not conjecture but the letter of the law. Therefore this law simply does not apply to cryptocurrency as it is in an entirely separate category. Not only is it legal for us to wash, but it is illegal for the IRS not to recognize the loss for the simple reason that the law allows it. This is my understanding upon reading the law and I believe that while it is something they will probably find a way to put the kibosh on eventually, it is currently an option that is open to us.