Question

I had crypto gains of @ $14k in 2021, but then was a victim of fraud and lost @ $51k. How do I enter the theft in TurboTax?

Forum|Forum|4 years ago
March 12, 2022
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The tax treatment of personal casualty losses and thefts is changed under the Tax Cuts and Jobs Act. Pursuant to the TCJA, the itemized deduction for personal casualty and theft losses is temporarily limited in tax years 2018 through 2025 solely to losses attributable to federally-declared disasters.

So your loss of cryptocurrency is not deductible.

You can read this IRS document on Victims of Ponzi schemes to see if your loss qualifies.

You still have to report your cryptocurrency gains.

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