🚨Lost & Stolen Crypto

Losing private keys

Losing the private key to a wallet containing your cryptoassets cannot be treated as a disposal for capital gains tax purposes. The private key still exists as part of the cryptography, albeit it is not known to the owner any more. Similarly the tokens will still exist in the distributed ledger.

Being defrauded

The IRS has not yet issued any specific guidance on crypto losses (such as scam ICOs). It may be possible to submit form 8949 claiming your cost basis and $0 in proceeds but not all tax profesionals agree about this approach. It's always best to consult a qualicfied profesional before proceeding.

Lost Crypto in Recap

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