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I put in approx $10500 in crypto/nft/day trading but lost approx 5000. Where can I put that I loss money in Crypto?

Forum|Forum|4 years ago
April 12, 2022
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I put in about $10500 into crypto last year DECEMBER. I was purchasing crypto and NFT's but lost about $5000. Would I be able to claim as a loss? Also, the loss happened mainly THIS year, but I put the $10500 in around December... would I just wait to claim the loss for next years taxes? Or would I put it in now, and when I pull the money out from my crypto wallet, than I would claim loss? Any help would be amazing.

Best answer by Tom_Cheng

Yes, you could claim the loss next year because the loss (transaction) mainly happened in 2022.

If you have a gain/loss in your cryptocurrency trading, you don't have to cash out but still have the responsibility to report it.

(For example, if you bought stocks and then sold them for a gain, it’s a taxable event. Just because you haven’t withdrawn any physical cash from your accounts doesn’t change that fact. This is no different from selling stocks and not withdrawing the money from your account. Make sure you keep records of your cryptocurrency transaction in case the Canada Revenue Agency(CRA) asks to see them.)

For more information on how to report gain/loss in TurboTax, please click:

TurboTax How do I report the sale of cryptocurrency on my taxes?

Thank you for choosing TurboTax.

T

Tom_ChengAnswer

Yes, you could claim the loss next year because the loss (transaction) mainly happened in 2022.

If you have a gain/loss in your cryptocurrency trading, you don't have to cash out but still have the responsibility to report it.

(For example, if you bought stocks and then sold them for a gain, it’s a taxable event. Just because you haven’t withdrawn any physical cash from your accounts doesn’t change that fact. This is no different from selling stocks and not withdrawing the money from your account. Make sure you keep records of your cryptocurrency transaction in case the Canada Revenue Agency(CRA) asks to see them.)

For more information on how to report gain/loss in TurboTax, please click:

TurboTax How do I report the sale of cryptocurrency on my taxes?

Thank you for choosing TurboTax.

M

mc_donkeyAuthor

So would I have to put in somewhere that I invested my $10500 into crypto for last year cause I bought in around nov/dec? Or would I only input that once I cash out/sell my crypto for a loss?

I don't plan to cash out, so there is the chance that I can always get more $ if crypto goes up, but also, could go down, so lots can change in 8 months...

T

Tom_Cheng

Yes, I understand! As long as the gain/loss is “unrealized,” meaning the asset's value has increased on paper but the asset remains in your possession, you do not have to pay taxes on it.

You don't have to report when you make a purchase because there is no taxable event until you sell the crypto.