@lBAM13 thank you for another question. For background, a net loss would mean that you sold crypto at a cumulative loss during the tax year 2022.
So, you want to report all crypto activity during the tax year it occurs. It is to your benefit to report losses. This is because up to $3,000 per year in capital losses can be claimed in a tax year. Losses exceeding $3,000 can be carried over to future tax returns for deduction against future capital gains taxes. This carryover can be carried forward indefinitely.
Furthermore, you want to report all crypto capital gain or loss activity to avoid a letter from the IRS. In 2023 will be issuing 1099-B forms, similar to investment/brokerage accounts, so the IRS will have the information that a capital gain or loss event occurred.
Be well and safe.
All the best,
Marc T.
TurboTax Live Select Time Tax Expert
26 Plus Years of Experience Helping Clients
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