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>A taxpayer generally realizes capital gain or loss on the sale or exchange of virtual currency that is a capital asset in the hands of the taxpayer. What does
by nsfyn55 7y ago
>A taxpayer generally realizes
capital gain or loss on the sale or exchange of virtual currency that is a capital asset in
the hands of the taxpayer.
What does this mean for crypto players that exchanged a lot of crypto, realized gains, then lost their wallet?
Are they still on the hook for taxes on the gains even though they can't access the wallet anymore?
- koolba 7y agoHow is that different then realizing gains for stock, converting it to cash, then losing the cash?
- wbl 7y agoYes. But they also incurred a loss of the wallet that may be used to offset. IANAL and the tax code makes Shadowrun look simple.
- deleted 7y ago[deleted]
- tathougies 7y agoIf you lost access to cash, perhaps you can claim it as a tax deduction, since you can claim lost or stolen cash, I think.