If I made a lot of money trading crypto in 2024 but lost it all do I still owe taxes? I lost all my money trading perpetual futures on MEXC. They are not regulated.

[hernandez-1418]

I started 2024 with $100,000 sold for $400,000 but lost it all trading perpetual futures on MEXC. Do I owe taxes? All of this happened in 2024. I started 2024 with $100,000 and I ended December with $40,000.

[Bsch4477]

You will have a short term capital gain on your first investment offset by the amount of short term capital loss from your second investment. 

[fanfare]

your capital loss is $60,000, of which $57,000 is carried over after the $3,000 you can deduct each year.

@hernandez-1418 

[rjs]

Your question was "Do I owe taxes?" What Bsch4477 and fanfare are telling you is that the answer is No. You do not owe tax on your crypto trading because you have a net capital loss for the year.

You didn't say whether you have any other income besides crypto trading. If so, you might owe tax on the other income, besides capital gains and losses. You cannot claim the entire capital loss in one year. Only $3,000 of the capital loss can be used to offset other income. The rest of the capital loss is carried over to future years. So if you have more than $3,000 of other income you might still owe tax on the other income.