{"id":37321,"date":"2022-12-16T23:11:56","date_gmt":"2022-12-16T23:11:56","guid":{"rendered":"https:\/\/lydian.io\/?p=37321"},"modified":"2022-12-16T23:11:57","modified_gmt":"2022-12-16T23:11:57","slug":"the-outcome-of-sbfs-prosecution-could-determine-how-the-irs-deals-with-your-ftx-losses","status":"publish","type":"post","link":"https:\/\/lydian.io\/the-outcome-of-sbfs-prosecution-could-determine-how-the-irs-deals-with-your-ftx-losses\/","title":{"rendered":"The outcome of SBF's prosecution could determine how the IRS deals with your FTX losses","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
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FTX founder Sam Bankman-Fried has acquired an official legal criticism following the collapse of his cryptocurrency trade, which is greater than only a ethical victory for the trade's roughly 1 million particular person traders. Whereas it is not but settled, issues look like heading in the right direction for these traders to take a extra favorable tax place as SBF's destiny continues to unravel.<\/p>\n
Earlier this fall, it appeared that misplaced belongings within the FTX collapse could be handled as a capital loss beneath US tax legislation for tax 12 months 2022. This capital loss can be utilized to offset capital positive aspects. However in a 12 months that has seen the crypto market as a complete falter, most traders will not have any capital positive aspects to offset in 2022.<\/p>\n
A capital loss will also be used to offset \"odd revenue\" reminiscent of B. Cash earned from a enterprise or job \u2013 as much as $3,000 per 12 months. The loss can be carried ahead indefinitely, but when your loss on the FTX collapse was important, it may take fairly some time to completely declare it.<\/p>\n
Associated: <\/strong>Biden is hiring 87,000 new IRS officers \u2014 they usually're coming for you<\/strong><\/p>\n A way more favorable situation for a lot of traders could be to assert a theft harm deduction, which might be offset towards odd revenue indefinitely. Claiming a theft loss is often a reasonably tough job that may be checked by the Inside Income Service. However the Misplaced Theft Tax Code features a \"secure haven\" for Ponzi schemes. For essentially the most half, if an investor can show a loss in a Ponzi scheme, the IRS doesn't require extra documentation.<\/p>\nWas FTX a Ponzi scheme?<\/h2>\n