Lost Crypto Wallet & Taxes

TaxiTaxes · ‎January 1, 2024

Hello,

I lost access to a hardware wallet and all of the cryptocurrency stored in it during the 2023 tax year. I do know some platforms were shut down as well, or no longer serve the United States, so that would likely count as well, I think.

Q: Are these types of "losses" something that would need to be reported (since I did not make a realized loss by selling the cryptocurrency, and instead literally no longer have access to them)? I read in another post that it's not something I would need to report since the IRS doesn't consider this as a taxable event, or for deduction purposes, but I wanted to make sure it's acceptable to ignore cryptocurrency in the 2023 taxes altogether before it's time to file.

In short: I made no realized gains or losses in 2023 related to crypto aside from literally losing access to some cryptocurrencies (lost wallet). Read in another post that it's fine to ignore the cryptocurrency section in TurboTax.

Thanks.