House Advances Crypto Tax Bill Limiting Loss Write-Offs

The House Ways and Means Committee has advanced a bill that would limit crypto investors' ability to claim losses on certain trades. The Digital Asset Tax Certainty Act, approved by the committee with a vote of 38-5, would apply wash-sale rules to digital assets sold after September 14.

Under current law, if an investor sells a digital asset and buys the same or substantially identical asset within 30 days before or after the sale, they can claim a loss on the trade. However, this bill would disallow that loss if the sale occurs after September 14.

The estimated revenue generated by this provision is $1.707 billion over 10 years, according to a preliminary estimate from the Joint Committee on Taxation.