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Level 1
posted Mar 25, 2022 12:18:31 AM

If I transferred crypto to a wrong wallet that I cannot access am I able to claim it as a loss?

If so, what section would this be in on TurboTax?  Thank you.

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1 Replies
Expert Alumni
Mar 25, 2022 7:09:09 AM

Unfortunately, no. After the 2017 Tax Cuts and Jobs Act was passed, losses of this sort are no longer deductible. If your cryptocurrency was lost or stolen, it's unlikely that you can write this off. You can read more about the details of these rules in the IRS guidance in Pub 547, although the IRS has not made an explicit ruling on this topic.