Hi moosa27, thanks for attending the event and posting questions.
According to IRS Notice 2014-21, the IRS considers cryptocurrency to be property, and capital gains and losses need to be reported on Schedule D and Form 8949 if necessary.
https://turbotax.intuit.com/tax-tips/investments-and-taxes/your-cryptocurrency-tax-guide/L4k3xiFjB
Therefore, if you sell the Bitcoin for $20,000 loss, it can offset the stock capital gain (sold for the home down payment.)
As far as buying Bitcoin back, please refer to below TurboTax article:
What is the wash sale rule for cryptocurrency?
https://ttlc.intuit.com/turbotax-support/en-us/help-article/cryptocurrency/wash-sale-rule-cryptocurr...
In 2022, Bitcoin is not subject to 30 days wash sale rule, i.e. you can buy back within 30 days.
Hope the above helps. Thank you.
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