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Level 2
posted Apr 6, 2025 10:06:28 AM

I was scammed out of crypto in 2024. These coins were purchased & recorded on my 2024 Coinbase Tax Form. Obviously no tax due but IRS record of purchase. Future problem?

I will obviously never receive the value of these coins but there is no way to prove I didn't just transfer them to another private wallet and sell them at some profit. There doesn't seem to be any way to record for tax purposes they were stolen. Is there a tax risk here?

0 2 590
2 Replies
Level 15
Apr 6, 2025 10:20:43 AM

if it was a PONZI scheme, you are probably entitled to a casualty loss deduction.  you may want to consult a pro to see if you loss is a loss from a Ponzi scheme. alify.  A pure theft probably doesn't qualify as a Ponzi scheme. Don't think Coinbase reports purchases. only when crypto is sold do they report sales and cost to IRS. 

Level 2
Apr 9, 2025 6:03:50 AM

Yes I knew about the ponzi scheme.  However I did spot after posting this that the ability to deduct most other crypto losses was removed in 2017 tax law.  But thanks for the quick response.