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February 2, 2023 1:56 am
No Deduction for Decline in Cryptocurrency Value
One investor who bought a cryptocurrency at $1 per unit and it declined to a penny a unit by the end of the year. He asked the IRS whether he could deduct a loss due to worthlessness or abandonment and the IRS said no (Chief Counsel Advice 202302011). There was no worthlessness or abandonment here. While the value of the cryptocurrency was minimal, there was still some value. And he never abandoned the holding. There must be some “express manifestation of abandonment” when an intangible property interest is purported to be abandoned. He maintained ownership, so no loss deduction was allowed.
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A credit for income taxes paid to a foreign country or U.S. possession. 401(k) plan. A deferred pay plan, authorized by Section 401(k) of the Internal Revenue Code, under which a percentage of an employee’s salary is withheld and placed in a savings account or the company’s profit-sharing plan. Income accumulates on the deferred amount until withdrawn by the employee at age 59?
