Is it possible to deduct short term losses incurred from trading cryptocurrencies?

3 answers

• Jan 03, 2022 · 3 years ago
  Yes, you can deduct short term losses incurred from trading cryptocurrencies when filing your taxes. The IRS treats cryptocurrencies as property, so any losses you incur from selling or trading them can be reported as capital losses on your tax return. However, it's important to keep accurate records of your transactions and consult with a tax professional to ensure you are following the proper guidelines and reporting requirements.
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• Jan 03, 2022 · 3 years ago
  Absolutely! Just like with any other investment, you can deduct the short term losses from trading cryptocurrencies on your tax return. Make sure to keep track of all your transactions and consult with a tax advisor to ensure you are taking advantage of all the deductions available to you. Remember, it's always a good idea to stay compliant with tax laws and seek professional advice if needed.
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• Jan 03, 2022 · 3 years ago
  Yes, you can deduct short term losses incurred from trading cryptocurrencies on your taxes. However, it's important to note that the rules and regulations surrounding cryptocurrency taxation can be complex and vary by country. It's recommended to consult with a tax professional who specializes in cryptocurrency taxation to ensure you are following the correct procedures and maximizing your deductions.
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