One of my relative incurred loss of crypto (he would like to keep the details of loss confidential). The loss is significant and is not recoverable. I would appreciate if no further questions are asked about the details of loss as he is very distressed.
After speaking with a tax agent, my relative is being told that has incurred a capital loss due to this loss of crypto. Link for details below.
He has reported that loss to acorn and police.
As per his understanding, he can only claim the capital loss against future capital gains (as capital loss is carried forward every year). He is full time employee and lives in his own house, which is exempted to capital gain tax when he sells it for profit.
The only thing we can see to compensate that capital loss is to get an investment property, keep it for several years, and then sell it when the market is good, and then offset the CGT against the capital loss (incurred due to crypto).
Is there any other possible way to leverage a capital loss which is sitting in tax records of an individual?
Thank you for reading.