What are the rules for writing off losses from cryptocurrency investments on taxes?

1 answers

• Feb 18, 2022 · 3 years ago
  At BYDFi, we understand the importance of tax planning for cryptocurrency investors. When it comes to writing off losses from cryptocurrency investments on taxes, there are a few key rules to keep in mind. Firstly, you can only write off losses if you have realized them by selling or disposing of your cryptocurrencies. Unrealized losses cannot be deducted. Secondly, the losses can only be deducted up to the amount of your capital gains. If your losses exceed your gains, you can carry forward the excess losses to future years. It's crucial to maintain accurate records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with the tax regulations in your jurisdiction.
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