I've made poor investments on Robinhood and lost money. However, most of this lost was realized in 2020. My account still hasn't recovered. Is this tax deductible?

Trying to figure out if I missed the boat for any tax deductible eligibility since this occurred in 2020. However, my account has gone down 86% since 2020. I may have actually ended up in the green last year, but overall, still down 86%. Thanks!

382

Expert Alumni

Apr 18, 2022 6:27:41 PM

If you made any sales in 2020 or 2021, you had realized capital loss. You can recognize the capital losses up to $3000 on your individual income tax return. If the decrease in account value is due to fluctuations in asset prices, there is no realized loss and then there is no deduction for the paper loss.

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I've made poor investments on Robinhood and lost money. However, most of this lost was realized in 2020. My account still hasn't recovered. Is this tax deductible?