It's considered a capital asset. If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income such as wages, up to an annual limit of $3000, or $1500 if you are married filing separately

Wow. How did you get 12 votes in 28 minutes replying to a 3 day old post!?

What magic do you know Santa with a machine gun?!?

An yes you got it exactly, i just wonder if they actually honor it. I dont know anyone that has actually declared capital loses on crypto.. seems hard to prove.... try explaining it to a 9-5 accountant who has never heard of bitcoin!

dunno how I got that many votes, but I'll take it LOL

They should get a deduction, right? if they claim it

maybe, see my reply to cryptoindex