Question

Can i use a short term loss from Jan 2018 with a short term gain in December 2017? For Crypto Taxes.

Forum|Forum|7 years ago
June 4, 2019
1 reply
0 views

Hello, i am doing cryptocurrency taxes for my first time and i have a question.

Example: I bought something on December 1st 2017 for $25,000. On December 10th 2017, i sell it for $50,000. So i have a $25,000 gain. Then i buy some more coins with the $50,000.

One month later in Jan 2018 i sell my coins for $25,000 for a $25,000 loss. Can i deduct that $25,000 loss from my December gain?

It would really suck if i couldn't.

Thanks for reading.

TurboTax Premier Online

M

maglib

Employee

Sorry. No. The 2018 transaction won't get reported till next year.

To record go to "Personal", "Investment Income", "Stocks, Mutual Funds, Bonds, Other", and record each transaction with the date you sold the coins, for how much, when you acquired them, and for what. Choose Other as the category.

Cryptocurrency is considered property by the IRS and every move is a recordable transaction. Only Cryptocurrency held for investment has a gain/loss. Cryptocurrency for personal property is only gains, no losses.

https://www.irs.gov/pub/irs-pdf/p544.pdf and https://www.irs.gov/pub/irs-pdf/i8949.pdf are the IRS rules for property and reporting. Personal property net losses are not deductible but investment property is.... follow the IRS guidelines for property.

IRS guidance on cryptocurrency as property:

https://www.irs.gov/newsroom/irs-virtual-currency-guidance

https://www.irs.gov/pub/irs-drop/n-14-21.pdf

I hope this was helpful?

**I don't work for TT. Just trying to help. All the best. ***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.