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Are Crypto Losses Tax Deductible as Worthless or Abandoned Property? | ASKramer Law

When taxpayers sell digital assets at a loss, their tax loss is quite straightforward. Their loss equals the amount that their tax basis exceeds the amount they received for the sale..

IRS: Deduct Digital Assets As Worthless, Abandoned Property

CCA quoted Tax Court case the effect that property is worthless only if an economic loss in the value of property is determined by the permanent closing of a transaction with respect to the property, to receive a Code Section 165 a loss, evidences the property is worthless.

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