By Andrew Leahey (October 25, 2021, 6:08 PM EDT) — Last month, Democrats in the U.S. House of Representatives indicated the Biden administration’s infrastructure bill may make several changes to the tax code, including an amendment to the wash sale rule that would treat commodities, currencies and digital assets as subject to wash sale limitations on loss deductions.

Previously, only stock and securities had been subject to the wash sale rules. The inclusion of digital assets will raise myriad questions.

What is a wash sale?

As with so many elements of the tax code, the wash sale rule is best explained from the perspective of what it is attempting to prevent:…