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The provided text from Expert Tax explains wash sales, which involve selling assets like shares or cryptocurrency near the financial year’s end and quickly repurchasing similar assets to create artificial tax losses. The article clarifies that this practice aims to unfairly reduce tax obligations and is distinct from regular asset trading due to its intentional tax benefit motive. The Australian Taxation Office (ATO) actively uses data analytics to detect wash sales and warns taxpayers that engaging in such activities can lead to penalties and increased tax liabilities. Expert Tax advises taxpayers to seek guidance from registered tax professionals and cautions against following advice promoting wash sales, highlighting the ATO’s focus on combating this form of tax avoidance.
