Thanks everyone, sounds like I need professional tax help for this situation. I guess It'd be better to research tax implications before gambling with crypto lol
So if I understand right:
Convert BTC to gambling = taxable event (capital gain/loss)
Gambling losses = only deductible against gambling wins
So I'd potentially have TWO tax impacts?
Kind of complicated tax situation. Bought 1.2 BTC in 2021 at $35k average. Used 0.8 BTC for gambling on various sites in 2024, lost it all. Original 0.8 BTC cost basis was about $28k. Now for taxes, can I:
Claim $28k gambling loss against other income?
Claim crypto capital loss?
Both?
Neither...
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