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How can I claim investment losses on my tax return for my cryptocurrency investments?

avatarCrawford YildirimJan 16, 2022 · 3 years ago1 answers

I have incurred losses from my cryptocurrency investments and I want to know how I can claim these losses on my tax return. Can you provide guidance on the process of claiming investment losses for cryptocurrency investments on tax returns?

How can I claim investment losses on my tax return for my cryptocurrency investments?
Cryptocurrency
Tax Return
Investment Losses

1 answers

  • avatarJan 16, 2022 · 3 years ago
    Claiming investment losses on your tax return for cryptocurrency investments is similar to claiming losses for other types of investments. You will need to report the loss on your tax return using Form 8949 and Schedule D. It is important to keep accurate records of your cryptocurrency transactions, including the dates, amounts, and values of your holdings. You will also need to determine the cost basis of your cryptocurrencies and calculate the fair market value at the time of the loss. If you are unsure about how to report your investment losses, it is recommended to seek the advice of a tax professional who is knowledgeable about cryptocurrency taxation.

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