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Anonymous
Not applicable

Can I file a loss for stolen Bitcoin? I have gains that I'm reporting, but my loss is greater than my gains. How would I go about this? Is it even an option?

I sent some Bitcoin to a few fraudulent brokers and needless to say, it's never to be seen again.  Am I able to claim this against the gains I received from the Bitcoin I sold?

1 Best answer

Accepted Solutions
Hal_Al
Level 15

Can I file a loss for stolen Bitcoin? I have gains that I'm reporting, but my loss is greater than my gains. How would I go about this? Is it even an option?

You may not claim the losses, as capital losses, on Schedule D. So, they can not be used against the capital gains.

A theft loss is deducted as a Casualty loss. It is only an itemized deduction, deducted on schedule A .

-You may only deduct the portion of Casualty losses that exceed 10% of AGI
and there is a $100 deductible

Yes, but the deduction has limits.

To claim a tax deductible casualty loss, you can only deduct your losses that exceed 10% of your AGI+$100. In addition, it is an itemized deduction. If you usually take the standard deduction, you'll have to now find additional itemized deductions to exceed the standard deduction. 

In TurboTax, enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

 -I’ll choose what I work on button

  -Scroll down to:

   --Other deductions & Credits

     ---Casualty & theft

Or type- casualty loss -in the search box

For more info, see:

http://www.irs.gov/pub/irs-pdf/i4684.pdf

View solution in original post

6 Replies
Hal_Al
Level 15

Can I file a loss for stolen Bitcoin? I have gains that I'm reporting, but my loss is greater than my gains. How would I go about this? Is it even an option?

You may not claim the losses, as capital losses, on Schedule D. So, they can not be used against the capital gains.

A theft loss is deducted as a Casualty loss. It is only an itemized deduction, deducted on schedule A .

-You may only deduct the portion of Casualty losses that exceed 10% of AGI
and there is a $100 deductible

Yes, but the deduction has limits.

To claim a tax deductible casualty loss, you can only deduct your losses that exceed 10% of your AGI+$100. In addition, it is an itemized deduction. If you usually take the standard deduction, you'll have to now find additional itemized deductions to exceed the standard deduction. 

In TurboTax, enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

 -I’ll choose what I work on button

  -Scroll down to:

   --Other deductions & Credits

     ---Casualty & theft

Or type- casualty loss -in the search box

For more info, see:

http://www.irs.gov/pub/irs-pdf/i4684.pdf

View solution in original post

Anonymous
Not applicable

Can I file a loss for stolen Bitcoin? I have gains that I'm reporting, but my loss is greater than my gains. How would I go about this? Is it even an option?

Thank you so much!! That was most helpful!! I would've responded sooner, but I got very sick with all the viruses going around. Thanks again!!
Safarojas88
New Member

Can I file a loss for stolen Bitcoin? I have gains that I'm reporting, but my loss is greater than my gains. How would I go about this? Is it even an option?

I am open to share my experience in Bitcoin recovery and to also enlighten everyone on how I was able to recover my stolen bitcoins from scammers fronting as an ICO , feel free to reach out to the recovery company that helped me on google at BitcoinBinaryRecovery or via Bitcoinretrieval2018 at gmail dot com

Suchsse167
New Member

Can I file a loss for stolen Bitcoin? I have gains that I'm reporting, but my loss is greater than my gains. How would I go about this? Is it even an option?

Can the victims of scam get their money back? Yes, if you have fallen victim to scam from an unregulated investment platform or any scam at ll then are eligible to recover what was stolen from you and this can only happen if this is reported to the right people. With the right approach and with evidence, you will get what you lost back. Those behind these unregulated platforms will likely want to sell the idea that what happened to your investment was an unfortunate occurrence when in reality what happened was theft via elaborate means. If you are a victim or you know any one who is a victim of these occurrences, you should know there are people who can help you. Simply search (recoverytemple tech) on google just the way it is in that bracket. It is never too late if you have the right information, your sanity can be restored.

Modenniz9
New Member

Can I file a loss for stolen Bitcoin? I have gains that I'm reporting, but my loss is greater than my gains. How would I go about this? Is it even an option?

I invested a total of $75,000.00USD worth of Bitcoin with an online company who does trading and was guaranteed a payout of 25% a week. They ended up shutting down their company website but their website was still running. So I could still see my dashboard at that time and instead of paying weekly they ended up compounding my money. It ended up compounding to $179,000USD so I requested for a withdrawal which was declined before they shutdown their website, I complained to my colleague at work who directed me about this recovery expert, CryptoMundia that helped him, i contacted him immediately, what surprised me most that I recovered my money that same week. You can contact him at CryptoMundia(at)yahoo{}com and he will assist you on the steps to recover your invested funds. Good luck as you contact him for help...

Mike9241
Level 15

Can I file a loss for stolen Bitcoin? I have gains that I'm reporting, but my loss is greater than my gains. How would I go about this? Is it even an option?

a recent law change denies deductibility of theft losses unless they are related to a PONZI-type scheme.

in that case use section C of form 4684. I make no determination as to whether your loss is from a PONZI-type scheme.

 

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