No. Your loss is not a business loss but rather an investment loss. You will handle it as an investment sale loss. However you must enter what you paid for the CoinBase, as the cost basis (not the value on the date it was stolen).
You cannot take a loss on anticipated increase in value when it's money you never paid tax on. Use the instructions below to enter your investment loss and if you entered it any place else you should delete it.
Be sure to select to enter the it yourself and select short or long term depending on how long you held the CoinBase.
- Long term is a holding period of more than one year and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
- Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)
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