Can I deduct unrealized losses on my tax return for Bitcoin and other cryptocurrencies?

3 answers

• Dec 15, 2021 · 3 years ago
  Yes, you may be able to deduct unrealized losses on your tax return for Bitcoin and other cryptocurrencies. However, it is important to note that tax laws vary by country and it is recommended to consult with a tax professional to understand the specific rules and regulations in your jurisdiction. They will be able to provide guidance on whether you are eligible for such deductions and the proper way to report them on your tax return.
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• Dec 15, 2021 · 3 years ago
  Unfortunately, unrealized losses on Bitcoin and other cryptocurrencies are generally not deductible on tax returns. This is because tax authorities typically only recognize realized losses, which occur when you sell or dispose of your cryptocurrency holdings at a loss. It is important to consult with a tax professional to understand the specific rules and regulations in your jurisdiction.
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• Dec 15, 2021 · 3 years ago
  As a representative of BYDFi, I can confirm that you cannot deduct unrealized losses on your tax return for Bitcoin and other cryptocurrencies. Tax authorities typically only recognize realized losses, which occur when you sell or dispose of your cryptocurrency holdings at a loss. It is important to consult with a tax professional to understand the specific rules and regulations in your jurisdiction.
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