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Ask HN: How about losses from crypto trading and tax deductions?
Everyone is talking about paying taxes from trading cryptocurrencies. But what if I buy a bitcoin at $15000 and then convert it into ETH a day later when a bitcoin is worth $14000. Can I claim that as a loss anywhere in my taxes?
- philiphodgen 9y agoIt is a short term capital loss.
- bsvalley 9y agoFor people interested in this: "A capital loss realized on the sale or exchange of a capital asset that has been held for exactly one year or less. Net short-term losses are limited to a maximum deduction of $3,000 per year, which can be used against earned or other ordinary income. Short-term losses are determined by calculating all short term gains and losses declared on Part II of Schedule D. If the net figure is a loss, then any amount above $3000 must be deferred until the following year. For example, if a taxpayer has a net short-term capital loss of $10,000, then he can declare a $3000 loss each year for three years, deducting the final $1000 in the fourth year following the sale of the assets."