Can I deduct my cryptocurrency losses on my taxes?
An example of an AI chatbot conversation about deducting cryptocurrency losses on taxes.
Can I deduct my cryptocurrency losses on my taxes?
Yes, you can deduct your cryptocurrency losses on your taxes. They are treated as capital losses.
What forms do I need to fill out for that?
You'll typically need to report your losses on Form 8949 and then summarize them on Schedule D.
Are there any limits to how much I can deduct?
Yes, you can deduct up to $3,000 in capital losses against ordinary income per year. Any excess can be carried forward.
What if I made profits in the same year?
If you made profits, you can offset those gains with your losses. Only the net gain will be taxed.
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