Crypto losses and taxes..
Finally sold my ETH for 85%loss .. I lost over 15k in crypto market ... I was trading using gdax FYI .. Is anyone claiming crypto losses in the 2018 returns? Any advise?
I'm an investment jinx. Everything that I invest in drops, and it only begins dropping shortly after I invest in it. Litecoin, Google stocks, Wealthfront, and... FB stocks.
If it also happens the other way around, please let us know what you're selling now.
You should start buying puts.
This ^. Gotta start buying puts beforehand.
Buying high and selling low. My man. Come join us over at /r/WallStreetBets and we’ll compound those losses in no time.
My ETH avg price is $400. At one point it was $2k. Now it's $110 :/. HODL. I have put $25k in crypto or below 5% of my net worth. Don't plan on selling them anytime soon.
Looks like crypto was a great TC normalizer, a lot of FANG folks invested into it and now appear to have lost most of their money. Too much greed will sink you on WS, go with solid blue chips (better if it pays dividends), else go in with clear exit strategy.
.. a lot of FANG folks also made money. Me included. Overall I was up 65% over 3 months.
Ask a CPA. If treated like stock loss, you can claim a few thousand per year for 3 years.
Yes you certainly can claim the loss (short term in your case). You can offset it against other short term gain you might have this year, or deduct 3k from income this year and roll the remainder loss over for next year and so on. It's just like say you lost in stocks. Exactly same tax wise. Use cointracker.io to help you file taxes (not affiliated, just a happy customer).
Thanks
The irs considers crypto property so there is no way to claim a loss. See the irs website for details.
Does it mean we cannot deduct these crypto losses against stock investment gains ? If not , where can we offset these losses with ?
As crypto is not an investment there's no deduction. You cannot write off loses from property. It would be like buying a car and then selling that car for 10k less a year later; there's no write off for property. See the pdf:
Did you report any profits in previous years? They might wonder where your losses come from if you’ve been buying and selling before without reporting.
Nope no profits at all. I did not buy anything until Jan 2018 and when I bought eth started to drop 🤦🏼♂️
Don’t beat yourself up over it. It’s a game of chance with cryptos and no one could with certainty know if we would be at 1k or 100k around this time. (Unless you’re professional and know how to setup a game plan and use stop losses correctly - then maybe you should beat yourself up a bit)