Disclaimer: This article should not be construed as tax or investment advice. Please speak to your own tax expert, CPA or tax attorney on how you should treat taxation of digital currencies, especially when it comes to claiming lost or stolen coins.
To get started reporting your lost and stolen coins from events such as exchange hacks, stolen wallets, or ICO scams, first download a copy of the Universal Manual Import template. Crypto losses can be entered into that template as either Casualty Losses, Theft Losses, or Investment Losses. Follow the instructions in our universal template guide to fill out the sheet in its entirety and import into CoinLedger.
For specific instructions on importing transaction history data from a bankrupt or defunct exchange, please see this guide.
Consult a Tax Professional on Next Steps
Lost and stolen crypto is a gray area in the world of crypto tax compliance. You may or may not be able to write off these losses depending on the specifics of your situation. Please see this guide for more information, and consult with a tax professional before making a decision.
CoinLedger is built to give you the option to report these events however you see fit, but we are not able to give out specific tax advice on these topics. For this reason we always recommend working with a tax professional before you claim a loss on your taxes for coins that you can no longer access.
Looking for a tax professional with crypto experience? Adaire, CoinLedger’s affiliated tax firm, can prepare and file your full tax return for you, including losses from stolen crypto or exchange bankruptcies. Learn more about Adaire here.
Have any further questions? Reach out to our Support Team anytime at [email protected].