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I had some cryptocurrency with an unrealized capital loss that I gave to someone as a gift.

My adjusted cost basis just before I made the gift was $4,000.

The fair market value (FMV) of the cryptocurrency at the time I made the gift was $1,500.

Under United States federal and Connecticut state tax law, may I claim a capital loss, and if so, how much?

ma11hew28
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1 Answers1

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No, you cannot, because you didn't lose any money. You gifted it away. The donee can claim capital loss based on the FMV or gain based on your cost basis (see the rules on the IRS site).

littleadv
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