Cryptocurrency Taxation: When & How to Deduct Related Losses

1 Credits: Taxes


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Cryptocurrency Taxation: When & How to Deduct Related Losses

Course Level
CPE Credits

1 Credits: Taxes

Course Description

The volatile nature of the cryptocurrency market, highlighted by the dramatic drop in market capitalization and the collapse of major platforms, has left many digital asset holders facing significant financial losses. This course directly addresses the urgent need for a strategic approach to cryptocurrency taxation in light of these losses. It agitates the challenge faced by holders in understanding how to navigate the complex tax implications of their digital asset transactions. The course offers a comprehensive solution by covering the mechanics of various types of tax losses – including capital, nonbusiness bad debt, casualty, theft, Ponzi, worthless security, and abandonment losses – and their applicability to cryptocurrency taxation. Participants will learn how to accurately identify and categorize losses related to cryptocurrency transactions, understand the tax implications, and evaluate the best practices for deducting these losses on tax returns. This course is essential for tax, accounting, and finance professionals seeking to guide their clients through the intricacies of cryptocurrency taxation strategies, especially in a market downturn.

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Learning Objectives

Upon completing this course, participants will be able to:

  • Accurately identify & categorize various types of losses related to cryptocurrency transactions.
  • Understand the tax implications of those transactions.
  • Evaluate the pros & cons and best practices for deducting losses on your tax return.
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Course Specifics

Course ID
Revision Date
September 20, 2022


Advanced Preparation


Compliance Information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-02076-22-O
IRS Federal Tax Law Credits: 1
CTEC Provider Number: 2071
CTEC Course Number: 2071-CE-1811
CTEC Federal Tax Law Credits: 1

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

CTEC Notice: California Tax Education Council DOES NOT allow partial credit, course must be taken in entirety. Western CPE has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone toll-free at (877) 850-2832, or on the Internet at

Meet The Experts

Shehan Chandrasekera

Shehan Chandrasekera is a Certified Public Accountant in the state of Texas and New Jersey. He specializes in business and individual tax planning and consulting for small businesses. Shehan has a broad tax knowledge of various industries including, Real Estate, Construction, E-commerce, Healthcare, Manufacturing & Distribution and the emerging Blockchain related industries. Before starting his career at JAG CPAs & Co, Shehan worked for several regional and national public accounting firms for a number of years. His ability to dissect the tax code and innovative thinking have immensely contributed to his rapid professional growth. After a successful career helping many …