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Write off crypto losses

The agency has also pursued customer records by sending court orders to several exchanges. Though our articles are for informational purposes only, they are written in accordance with the latest guidelines from tax agencies around the world and reviewed by certified tax professionals before publication. Crypto tax software like CoinLedger can help simplify the process. Because of the tax benefits of crypto losses, some investors choose to intentionally sell their cryptocurrency at a loss to reduce their tax bill. How crypto losses lower your taxes.

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Lost money on cryptocurrency this year? Consider the example below. Crypto taxes overview. Crypto and bitcoin losses need to be reported on your taxes. Got Losses on Stocks, Bonds or Crypto? In some cases, you may be able to claim a capital loss , or bad debt deduction, and write off what you spent on the asset.