IRS rules allow unlimited crypto loss carryforward, $3,000 yearly deduction cap
Under U.S. federal tax law, individuals who incur net capital losses from cryptocurrency sales may carry forward unused losses into future years, subject to Internal Revenue Service guidelines. The price of a digital asset must be realized through a taxable event, such as a sale or disposition, to count as a capital loss for tax purposes. Mere market value declines are not sufficient for reporting a deductible loss.