Digital asset playbook: Part 2 — The loss ledger Tax Section Odyssey

The tax treatment for digital asset losses can be a complex area. Not to mention, misleading information can cause confusion for tax practitioners and taxpayers alike. Learn more about the intricacies of how realized digital asset losses are reported and why it likely makes sense to avoid having the digital asset be considered worthless or abandoned based on the current tax treatment. 
AICPA resources
Digital assets and virtual currency tax guidance and resources —This hub is your go-to library for AICPA guidance and resources as well as current legislation, IRS initiatives and tax advocacy project Crypto loss tax reporting fact or fiction — With the prevalence of recent virtual currency exchange bankruptcies and digital asset volatility, taxpayers may have misconceptions on reporting tax losses. 
AICPA comments on digital currency losses, April 14, 2023 Other resources 
IRS Chief Counsel Advice (CCA) 202302011 — Memorandum that addresses the applicability of IRS Sec. 165 to cryptocurrency that has declined in value  IRS Digital Assets  — Resources and guidance available on the IRS.gov website For a full transcript of the episode, see Tax Section Odyssey on the AICPA &CIMA website.