How to report Crypto currency loss from theft?

Forum|Forum|2 years ago
November 15, 2023
1 reply
16 views

Hello,

I unfortunately fell victim to Crypto currency theft. How do I report this significant loss on my taxes and what forms do I need to gather in preparation for tax submission?

Ask the Experts - Crypto - Nov 2023

EleanoreS

Employee Tax Expert

Good day,

I am sorry that you have experienced a theft of your crypto holdings.

There was a time when you could deduct a casualty loss for the theft of property. However, the Tax Cuts and Jobs Act of 2017 eliminated casualty losses for most taxpayers (there are exceptions for taxpayers effected by Federally Declared Disasters). As such, you can not deduct the loss resulting from the theft of your crypto.

This is a new Turbo Tax Resource that may answer other crypto questions you have.

Thank you for reaching out to the TurboTax Community.