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Submitted By: someone
Answered: January 9, 2023 1:33 am
Answered: January 9, 2023 1:33 am
I had put money into FTX cryptocurrency, which is now in bankruptcy. How do I report the loss on my tax return?
As of yet, it is not clear how to report the loss. FTX has filed for Chapter 112 bankruptcy protection, which means that holdings may still have some value. The IRS may clarify whether those who put money into FTX are victims of a Ponzi scheme and would be eligible for immediate tax write-offs. Stay tuned…we’ll provide guidance as soon as this matter is clarified.
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Tax Glossary
Itemized deductions
Items, such as interest, state and local income and sales taxes, charitable contributions, and medical deductions, claimed on Schedule A of Form 1040. Itemized deductions are subtracted from adjusted gross income to arrive at taxable income. The amount of itemized deductions is also subject to a reduction when adjusted gross income exceeds certain limits.
