I just learned that the IRS doesnβt let you write off stolen crypto.
I believe I am reacting with the appropriate amount of rage.
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My understanding is that theft of an asset acquired as an investment is still deductible as an investment loss under 165(f).
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Interesting. I'll have to check this out! Thanks
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Let us know. I'm not 100% confident.
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Pretty sure you only get to deduct your basis though.
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Of course. You can only lose what you paid for, not what you hoped to get.
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yeah, sucks because if you bought something for $1 and lost it when it was worth $1000, you only get the $1 write-off. From the government's perspective, you didn't "buy" insurance on the write-off by realizing the gain and paying taxes so you don't get the deduction either.