Crypto Investors: Tax Write-offs for 2022's Trillion-Dollar Losses
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In the wake of a tumultuous year for cryptocurrency, investors may find solace in the potential for tax write-offs.Paragraph 1
Despite the industry's losses of nearly 14 trillion in 2022, there is a silver lining for investors. Andy Phillips, Director of the Tax Institute at HR Block, confirms that crypto losses are eligible for tax write-offs in the same way as other investment losses.
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A capital loss occurs when an investor sells a cryptocurrency or non-fungible token (NFT) below its original purchase price, also known as the cost basis. These losses can be claimed on tax returns, offsetting potential gains from other investments.
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