Q&A: “I lost money on Bitcoin … is that tax-deductible?”
If you began investing in cryptocurrency at the top of the market, you might be sitting on some pretty significant losses. Today’s caller is wondering if there’s a bright side: can these losses be deducted from your taxes?
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What It's About
If you lost it all in crypto—can you at least save some cash on taxes?
Notes from Chris
Episode 2094
If you invested in cryptocurrency ten years ago … you’re probably not listening to this podcast, because you’re a mega-millionaire. Good work. If you began investing in cryptocurrency (Bitcoin of course, but also others) in the spring of 2022, you might be less than a mega-millionaire. In fact, you might be sitting on some pretty significant losses. Some of my investments are down 90%, which isn’t fun. Fortunately I try to diversify, but still, it’s definitely a hit for a lot of us. Today’s caller is wondering if there’s a bright side: can these losses be deducted from your taxes?“Like many people, I bought Bitcoin and other cryptocurrencies last year. Everyone was doing it and the price kept going higher! Just once problem: I bought at the top and then the market crashed. It seems like we're in a slow recovery now (what do you think?) but in the meantime I'm sitting on a big loss, at least on paper. Can I deduct this on my taxes or otherwise see some kind of benefit? I know, you don't usually think of losing a lot of money as a benefit, but I'm looking for any silver linings. ”Listen to today's episode to learn more...
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