Monday, March 29, 2021

Can you write-off a loss in value of interest earned?

(I live in the US)

For example:

  1. I earn $100 in interest (in the firm of bitcoin) in 2021.
  2. I pay $30 in taxes on the interest earned above at the end of the year.
  3. By some supernatural event, in 2022, the price of bitcoin plummets to roughly $0.00

In the example above, if I sell my bitcoin interest for ~$0.00 (which was taxed at a value of $100), am I able to write this off as a loss on my taxes? Or would I just be out the $30 paid to the government with nothing to show for it?


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