[nsfyn55]

>A taxpayer generally realizes capital gain or loss on the sale or exchange of virtual currency that is a capital asset in the hands of the taxpayer.

What does this mean for crypto players that exchanged a lot of crypto, realized gains, then lost their wallet?

Are they still on the hook for taxes on the gains even though they can't access the wallet anymore?

[koolba]

How is that different then realizing gains for stock, converting it to cash, then losing the cash?

[tathougies]

If you lost access to cash, perhaps you can claim it as a tax deduction, since you can claim lost or stolen cash, I think.

[wbl]

Yes. But they also incurred a loss of the wallet that may be used to offset. IANAL and the tax code makes Shadowrun look simple.