Crypto trade loss write off

Forum|Forum|3 years ago
November 16, 2022
1 reply
9 views

What documentation is needed to write off a trade loss? If the loss was substantial would only $3000 of that be written off towards income? 2nd scenario, if there was a gain (say home sale profit) and the trade loss. Would the trade loss offset the capital gains of the home sale?

rferreira 1

Level 4

You would report the sale of the Crypto like you would report the sale of any security. On your Schedule D. You are correct that you can deduct a $3,000.00 loss, providing there are no other gains, per year until the balance is used up.

As far as the gain from the sale of a house, you didn't specify if it was a your primary residence or a rental property. Rental property would be a capital gain and would be offset by any capital loss. Personal property would be an ordinary gain. Thus, it won't be offset by any capital loss.

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