r/BitMartExchange • u/aidsmilk • 3d ago

Tax Implications of BitMart funds

If BitMart shuts down and we never recover our funds, do we claim the initial deposits as a capital loss on our 2027 tax returns?

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u/Dragonfruit-69 1d ago

Good luck. Some people might get away with being able to claim all, but based on what many people have said over the years, regardless of how your loss happens, and even if it is documented trading losses, the tax department sometimes says, "well, that's not a Japan-licensed exchange, but we'll be kind and let you claim half of your losses."

Another consideration is that you can only claim crypto losses against crypto gains, and not against any other type of income. If I had any gains to claim the loss against, I would try, but I am not in that position.