Can crypto losses offset taxes?

Can Crypto Losses Offset Taxes?

Losses from one virtual digital asset (e.g. selling Bitcoin at a loss) can be set off only against gains from another VDA in the same financial year. You cannot set off VDA losses against salary, business income, or other capital gains. You also cannot carry forward VDA losses to future years. So if you have only losses in a year, you get no tax benefit from them. Plan your trades and record-keeping with this in mind.