Lost tokens

Forum|Forum|2 years ago
November 15, 2023
1 reply
14 views

Hi,

I lost crypto tokens in binance. How do I claim lost money on tax return?

Ask the Experts - Crypto - Nov 2023

evelynm

Employee Tax Expert

Hello: Typically, you can't deduct losses for lost or stolen crypto on your return. Losses in the crypto world would mean having damage, destruction, or loss of your crypto from an identifiable event that is sudden, unexpected or unusual. You most likely did not have income reported on this previously to take the loss.

Here is a link for further details: https://ttlc.intuit.com/community/articles/community-news-announcements/crypto-investors-your-lives-just-changed/05/3109291

Have an amazing day. Evelyn M (CPA 20+ years). I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer".

PG80Author

Level 2

Thanks for your reply. So, does it mean I don't need to show any losses on Tax return? I don't need to do anything on tax return ?

evelynm

Employee Tax Expert

Correct. You do not need to report it. An ordinary loss from a worthless or abandoned investment is a miscellaneous itemized deduction in the year of worthlessness/abandonment but is not deductible on your tax return because the Tax Cuts and Jobs Act of 2017 disallows miscellaneous itemized deductions for tax years 2018-2025.

Have an amazing day. Evelyn M (CPA 20+ years). I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer".