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I got rugged on a couple NFT projects-how do I show this on my taxes?

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Hey all, I bought into a few NFT projects (pretty much all rugged, massive L) in 2021. Shoutout any fellow cityverse and sushi nekko victims if you’re out there lmao, these got me bad (F in the chat pls)

Anyways, I realized some of these might be tax deductible, and suddenly stopped feeling sorry for myself haha. I read this article from CryptoTrader.Tax (switched to them because I didn’t have a great experience with Koinly last year) and they say NFTs are taxed as capital gains? To me, this sounds like I can deduct my NFT losses against my other crypto gains. Anyone have experience here? I’m considering using cryptotrader.tax for this, but wanted to hear from some other NFT rug victims too. What do you think?

submitted by /u/benyoderusa
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