Question - I currently dabbled last year with roughly 10-11k. All went to shit. I now hold like $32 dollars of 1 coin. I placed multiple spot and leverage positions which was a dumb idea. Right now I need to pay the irs $200 bucks (basically broke even) should I go through the effort to claim this loss? Only thing is I never reported anything prior years but never made/ losses anything substantial, would k just lower my ordinary taxes to less $3k and that’s it?

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Additional Posts in Crypto Taxation Bug

Question with regards to treatment of Crypto loss: client purchased large amount of alt coins during 2021 and was intended to sell them shortly after the purchase. However his access to sell was restricted and he was not able to sell after continued attempts until 8 days later, the sell transactions went through- during this time the values dropped dramatically and he sustained $100K loss. Practically we’ll report this as ST capital loss, but I’m curious whether it could be viewed as damage?

I’m gotta kick off this bowl with a story that my client shared with me today during the interview. This young man started playing with Bitcoin 10 years ago. In 2013 he accidentally sent 50 BTC to an wrong address!! So the 50 BTC is in limbo and no owners.

Here is the question (maybe for crypto tax attorneys): if he attempt to recover this asset this year and then he failed to do so, then he decided to officially give up, should the loss be falling into abandoned assets but not casualty?

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