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RossAngelos
Level 3

Can I deduct my expenses for cryptotrader?

I used cryptotrader to calculate my crypto losses. I paid $150 for their services. Any way I can deduct that in my taxes?

1 Best answer

Accepted Solutions
Critter
Level 15

Can I deduct my expenses for cryptotrader?

Deductions that have been suspended for 2018
https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-b...

 

Miscellaneous deductions subject to the 2% limit, including unreimbursed job expenses (reported on Form 2106) have been repealed for tax years 2018–2025. Affected deductions include:

  • Job-search expenses
  • Home office†
  • Union dues†
  • Work-related travel, mileage, and transportation (including DOT per diem)†
  • Work-related meals, entertainment, gifts, and lodging†
  • Work-related tools and supplies†
  • Specialized clothing or uniforms†
  • Work-related education†
  • Investment fees and expenses
  • Safe deposit box rental fees
  • Depreciation on computers used for work† or investments
  • Membership in professional societies†
  • Subscriptions to professional journals or trade magazines†
  • Licenses and regulatory fees†
  • Malpractice insurance†
  • Tax-preparation fees†
  • Tax advice fees†
  • Educator expenses in excess of $250
  • Appraisal fees for casualty losses or donations
  • Hobby expenses

View solution in original post

2 Replies
Critter
Level 15

Can I deduct my expenses for cryptotrader?

Deductions that have been suspended for 2018
https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-b...

 

Miscellaneous deductions subject to the 2% limit, including unreimbursed job expenses (reported on Form 2106) have been repealed for tax years 2018–2025. Affected deductions include:

  • Job-search expenses
  • Home office†
  • Union dues†
  • Work-related travel, mileage, and transportation (including DOT per diem)†
  • Work-related meals, entertainment, gifts, and lodging†
  • Work-related tools and supplies†
  • Specialized clothing or uniforms†
  • Work-related education†
  • Investment fees and expenses
  • Safe deposit box rental fees
  • Depreciation on computers used for work† or investments
  • Membership in professional societies†
  • Subscriptions to professional journals or trade magazines†
  • Licenses and regulatory fees†
  • Malpractice insurance†
  • Tax-preparation fees†
  • Tax advice fees†
  • Educator expenses in excess of $250
  • Appraisal fees for casualty losses or donations
  • Hobby expenses

View solution in original post

DanielV01
Employee Tax Expert

Can I deduct my expenses for cryptotrader?

It depends.   If you are a cryptominer, reporting mining activities on Schedule C, it is possible that these services (which you would be using to determine the value of virtual currency you receive when you secure the blockchain), would be an "ordinary and necessary expense" that you report on Schedule C.  However, if you are only involved in virtual currency investment (in other words, holding cryptocurrency in your crypto-wallet with the hopes that it is increasing in value), then your expenses can only be claimed if they can be included as an adjustment to basis.  An example of adjustment to basis would be something like this:  You purchase a crypto-coin for $100.  You hold it for a while, and then use the coin to purchase a product, and at the time you do, your coin is worth $200.  However, you are charged a $5 fee for the conversion.  Your adjusted basis is $105:  $100 for the original investment plus the $5 fee.  If using the crypto trader services constitutes this type of adjustment, you can deduct it.  Otherwise, it is not a deductible expense anymore as per above.

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