Crypto losses are fully deductible
You can deduct realized crypto losses, but only against capital gains first, then up to $3,000 of ordinary income. Unrealized losses (paper losses) are not deductible at all.
Outdated
by M. Kessler
community verdict
51% it depends86 votes
Sign in to vote. Verdicts are community opinion, never authoritative.
Discussion
Add support or a counterpoint — optionally with a source.
Sign in to join the discussion.
- CounterpointR. Lindqvist · Aug 13, 2026
The wash-sale rule doesn't apply to crypto the way it does to securities — yet. That's a moving target and worth watching.
- SupportJ. Okafor · Aug 17, 2026
Capital loss limitations apply to crypto like other capital assets.
IRS FAQ on virtual currency transactions. · read the source