So, for 2024, you bought their apps using BTC or ETH expecting to get the BTC or ETH back and expecting to be paid $200 / day. You were only paid $55. You have an IRS form 1099-B from CashApp reporting these transactions in the amount of $15,000. Is this correct?
You have additional activity of $68,000 that will be reported for 2025.
Have you talked to legal counsel about this matter?
IRS Topic 515 states:
Theft losses are generally deductible in the year you discover the property was stolen unless you have a reasonable prospect of recovery through a claim for reimbursement. In that case, no deduction is available until the taxable year in which you can determine with reasonable certainty whether or not you'll receive such reimbursement.
If you believe that you qualify for under the theft rules, retain a record of your correspondence with the other party.
IRS Topic says that the taking must be illegal under the law of the state where it occurred. You may need to engage law enforcement to investigate your theft and bolster your claim with the IRS.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
