Regulation· ★★★· neutral·

IRS reviews fund tax trades, may apply new guidance to past transactions

  • —IRS is examining trades that pair capital gains with ordinary losses offset against wages and other income
  • —The notice cites crypto ETF strategies using in-kind redemptions to reduce taxable income
  • —Public comments are due by October 28, 2026
  • —A separate Revenue Ruling 2026-20 treats certain appreciated-stock-for-ETF-share exchanges as taxable
Why it matters: New guidance could reshape fund and crypto ETF tax strategies and potentially apply to past trades, raising uncertainty for investors.
Source: TokenPost
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