Nicola
Fri Jul 05 2024
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7 answers
1192
Can you deduct a loss in value if you don't sell crypto?
As a cryptocurrency investor, I'm curious about the tax implications of fluctuations in the value of my holdings. Specifically, I'm wondering if I'm able to deduct a loss in value for my cryptocurrency investments even if I haven't sold any of the coins? In other investment scenarios, such as stocks or bonds, unrealized losses are not typically deductible. However, given the unique nature of cryptocurrencies and the volatility of their prices, I'm not entirely clear on the tax rules surrounding this. Could you clarify if and how I might be able to account for these losses in my tax returns? It would be greatly appreciated if you could provide some clarity on this matter.
