The simple answer is if you sell all of your holdings in Exchange A you will have a transaction that would result in a capital gain or loss. This is reportable on your tax return.
If you then purchased an amount in Exchange B it would be acceptable.
Currently cryptocurrency is not subject to Wash Sale rules, but that can change.
- A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar.
- It also happens if the individual sells the security at a loss, and their spouse or a company they control buys a substantially similar security within 30 days.
- The wash-sale rule prevents taxpayers from deducting a capital loss on the sale against the capital gain.
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