If you purchased cryto and no longer own it, you either lost it, abandoned it, or gave it away. In any case, the loss is not deductible. So you have nothing to report.
Common cryptocurrency theft losses include the following:
- Stolen Coins
- Hacked Wallets
- Hacked Exchange Accounts
Post-2017 after the Tax Cuts and Jobs Act was passed, theft losses are no longer deductible on Form 4684. If your cryptocurrency was stolen and classifies as a theft loss, it's unlikely that you can write this off. You can read more about the details of these rules in the IRS guidance in Pub 547.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
