Can I claim a capital loss from lost cryptocurrency due to a cryptocurrency investment scam?If so, how would I do this?

[DaveF1006]

To clarify, what Turbo Tax product are you using? If i can make a suggestion, if you are using Turbo Tax online, you might check out the full service feature and see if this is cost effective to you. Full service has a top team of tax professionals that will prepare your return for you. 

If you are using desktop software, you may consider switching to online to take advantage of the full service feature. Here is the direct link to begin the full service process on Turbo Tax online.

If you decide to use the full service feature, select this link to request a refund for your CD/download product if you purchased the software product.

@LeoVTM 

[amitc]

I found this article helpful
https://news.bloombergtax.com/tax-insights-and-commentary/victims-of-crypto-and-nft-fraud-can-take-t...

Prior to 2018, losses due to theft could be deducted as an itemized deduction, but the TCJA limited the theft loss deduction to losses attributable to a federally declared disaster until 2025.

There is a special exception for victims of Ponzi-type investment schemes. In 2009, the IRS published Revenue Ruling 2009-9 to provide tax relief to the victims of Bernie Madoff’s $64 billion Ponzi scheme. In this ruling, the IRS stated that if any money put into an investment account with the expectation of profit and is found to be fraudulent, any loss is considered a business theft loss and not a personal theft loss. Therefore, the personal theft loss limitation stated above does not apply. 

@LeoVTM  @CCnewlife988 

[Anonymous]

• I lost $50k in Bitcoin to an investment scam and being scammed further while seeking help. After months of struggle, i found [email address removed], who successfully recovered my lost funds.