Build Back Better ‘Wash Sales’ Legislation Would Impact Currency, Commodity, Options, and Digital Asset Markets
The House Rules Committee recently released the latest version of HR 5376, the Build Back Better Act. This proposal would amend Internal Revenue Code section 1091 (“loss from wash sales of stock or securities”) to apply to a much broader range of assets, including foreign currency, commodities, and digital assets, in addition to stocks and securities. The legislation would also apply the wash sale rule to acquisitions of substantially identical assets by related parties, such as a spouse, dependent, corporation, partnership, trust, or estate which controls, or is controlled by the taxpayer, as well as certain types of accounts (including IRAs, health savings accounts, section 529 accounts, Coverdell education savings accounts, and qualified retirement plan accounts).
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