Why You Should Report Your Crypto Losses

As a crypto tax law firm, we have a ton of people come to us with this question:

"I only had losses last year, do I still need to report them on my taxes?"

Lets break down why it's so important to report crypto losses.

It's important to know that the IRS may not have a full understanding of your transaction history. They may only see your gains, but reporting your losses can actually help you in the long run.

Losses can be used to offset your capital gains, up to $3k against ordinary income, and even rolled over into future years. So when the bear market returns, you'll be glad you reported your losses.

Don't miss out on these benefits and prevent a potential audit - make sure to report your losses!

Disclaimer: The information provided pertains to the United States. Information contained in this post and in the comments is intended for general informational and educational purposes and does not constitute legal advice. Reading this post, reading the comments, receiving a reply to your comment, or sending a direct message to this account does not create an attorney-client relationship. Contact an attorney for legal advice regarding your specific situation.