Capital loss: what it means for crypto tax
A capital loss is the opposite of a gain: you disposed of an asset for less than its cost basis. Losses are not taxed, and in most countries they can offset capital gains elsewhere, reducing your net taxable amount, with unused losses often carried forward.
General information, not tax advice. Crypto tax rules differ by country and change over time, verify against your country's guidance or a qualified advisor.
An example
Sell a token for 400 that cost you 1,000 and you have a 600 capital loss, which can typically be set against a 600 gain made elsewhere that year.
Why it matters for your tax
Losses are an asset, not just bad news, but usually only if you report them. Tracking losing disposals as carefully as winning ones is what lets you claim the deduction.
CryptaTax handles this automatically across your wallets and exchanges, so the concept is applied consistently without you tracking it by hand. Try the crypto tax calculator →
Related terms
See the full crypto tax glossary for every term, or the crypto tax guides for how they fit together.
FAQ
A capital loss is the opposite of a gain: you disposed of an asset for less than its cost basis. Losses are not taxed, and in most countries they can offset capital gains elsewhere, reducing your net taxable amount, with unused losses often carried forward.
See the crypto tax glossary for related terms, or the crypto tax guides for worked examples. Rules differ by country, so check your country's rules.