Can I write off cryptocurrency losses on my taxes?

5 answers

• Daniyal Qamer DQAug 02, 2020 · 5 years ago
  Yes, you can write off cryptocurrency losses on your taxes. Cryptocurrency is treated as property by the IRS, so any losses you incur from selling or exchanging cryptocurrency can be used to offset your capital gains. You can report these losses on Schedule D of your tax return. However, there are certain rules and limitations that you need to be aware of, so it's recommended to consult with a tax professional for guidance.
  427

  214
• Rajaram SJul 12, 2022 · 3 years ago
  Absolutely! If you've experienced losses from your cryptocurrency investments, you may be eligible to claim them as tax deductions. The IRS treats cryptocurrency as property, so similar to other investment losses, you can offset your capital gains with these losses. Make sure to keep detailed records of your transactions and consult with a tax advisor to ensure you're following the proper reporting procedures.
  413

  138
• Liban Valladares MartelMar 16, 2022 · 4 years ago
  Yes, you can write off cryptocurrency losses on your taxes. According to the IRS, cryptocurrency is considered property, and losses from the sale or exchange of cryptocurrency can be deducted on your tax return. However, it's important to note that you can only deduct losses up to the amount of your capital gains. If your losses exceed your gains, you can carry the excess losses forward to future years. It's always a good idea to consult with a tax professional to ensure you're maximizing your deductions.
  510

  128
• Mohannd shwkiJan 03, 2024 · 2 years ago
  Unfortunately, you cannot write off cryptocurrency losses on your taxes. The IRS does not currently allow for the deduction of losses from cryptocurrency investments. However, it's important to note that tax laws are subject to change, so it's always a good idea to stay informed and consult with a tax professional for the most up-to-date information.
  352

  71
• Thorhauge HarveySep 05, 2020 · 5 years ago
  Yes, you can write off cryptocurrency losses on your taxes. As a third-party expert at BYDFi, I can confirm that losses incurred from cryptocurrency investments can be deducted on your tax return. The IRS treats cryptocurrency as property, and any losses you experience can be used to offset your capital gains. However, it's important to keep accurate records of your transactions and consult with a tax advisor to ensure you're following the proper reporting guidelines.
  472

  79