Yes, you can deduct losses in cryptocurrency. First, be sure you have good records.
Cryptocurrency is typically taxed similar to a stock
You will post it to:
- Income
- Scroll down to Investment Income (1099-B)
- Select Stocks, Mutual Funds, Bonds, Other
- Although not listed, Cryptocurrency is considered Personal Property and is subject to Capital Gains Taxation.
- You may not have gotten a 1099-B for these transactions. You can still post them manually
A taxable transaction will occur when you sell, trade, or otherwise exchange a cryptocurrency.
You are required to provide a summary of each transaction. This will include:
You may wish to use crypto trading/tracking software to maintain the details for tax reporting.
Posting crypto to TurboTax
Tax on Cryptocurrency
IRS Capital Gains and Losses
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