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Deductions & credits
In the case you describe it sounds like the Crypto losses were posted to your Federal return similar to stock losses. This is the correct way to account for the loss, and it will carry over to your Arizona return. So, there is no need to make any adjustment.
You are correct that Crypto is considered property by the IRS. However, it is a hybrid. It is not a depreciable asset.
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‎February 5, 2023
6:49 AM