Is it possible to deduct stock losses from cryptocurrency investments?

3 answers

• NekoStalkerNov 18, 2022 · 3 years ago
  Yes, it is possible to deduct stock losses from cryptocurrency investments. However, the tax treatment for cryptocurrencies is different from that of stocks. While stock losses can be offset against stock gains for tax purposes, cryptocurrencies are treated as property by the IRS. This means that cryptocurrency losses can only be offset against other cryptocurrency gains, not against stock gains. It's important to consult with a tax professional to understand the specific tax rules and regulations in your jurisdiction.
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• ShelbyJul 31, 2023 · 2 years ago
  Unfortunately, you cannot deduct stock losses from cryptocurrency investments. The tax treatment for cryptocurrencies is different from that of stocks. Cryptocurrencies are treated as property by the IRS, and losses can only be offset against other cryptocurrency gains. Stock losses cannot be used to offset cryptocurrency losses for tax purposes. It's always a good idea to consult with a tax professional to ensure you are following the correct tax regulations.
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• mari gavrJun 24, 2024 · a year ago
  As a representative from BYDFi, I can confirm that it is not possible to deduct stock losses from cryptocurrency investments. The tax treatment for cryptocurrencies is different from that of stocks. Cryptocurrencies are considered property and are subject to specific tax rules. Losses from cryptocurrencies can only be offset against other cryptocurrency gains. It's important to consult with a tax professional to understand the tax regulations and requirements for your specific situation.
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