Can I Claim LOOKS as a Tax Loss?
LooksRare
YES - You Can Claim It
If you sold LOOKS at a loss, you can deduct up to $3,000/year from your income, with unlimited carryforward for larger losses.
How to Claim LOOKS as a Tax Loss
- Sell your LOOKS - You must actually sell (or swap) to realize the loss. Holding doesn't count.
- Calculate your cost basis - What you paid when you bought it.
- Calculate your proceeds - What you received when you sold.
- Report on Schedule D - File as short-term (held <1 year) or long-term (held >1 year) capital loss.
Tax Loss Harvesting Rules
- $3,000 Annual Deduction: You can deduct up to $3,000 of net capital losses against ordinary income each year.
- Unlimited Carryforward: Losses exceeding $3,000 can be carried forward to future years indefinitely.
- Wash Sale Consideration: Traditional wash sale rules don't apply to crypto (as of 2024), but check current IRS guidance.
- Same-Day Repurchase: You can sell LOOKS for the loss and immediately repurchase if you believe in the project.
What Happened to LooksRare?
LooksRare (LOOKS) experienced a significant decline of 99.4% from its all-time high of $7.10. This crash occurred around June 2022, resulting in substantial losses for holders.
If you purchased LOOKS at a higher price and sold at today's price of approximately $0.04, you may be eligible to claim a capital loss on your tax return.
Calculate Your Exact Tax Savings
Use professional crypto tax software to automatically calculate your losses and generate IRS-ready forms.
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Example: LOOKS Tax Loss Calculation
Scenario: You bought 1,000 LOOKS at $7.10 each = $7,100 cost basis.
Today: You sell 1,000 LOOKS at $0.04 each = $40 proceeds.
Capital Loss: $7,060 deductible loss.
Don't Miss the Deadline
Tax loss harvesting must be completed by December 31, 2024 to count for the 2024 tax year.