How To Deduct Losses On Virtual Currency, Cryptocurrency And Non- Fungible Tokens In the current digital asset climate of plummeting values, frozen accounts, and bankruptcy filings, if you own investments in digital assets, such as virtual currency, cryptocurrency and/or non-fungible tokens (NFTs), you might wonder when it is appropriate to report losses on your tax return. When Can You Deduct Digital Asset Investment Losses On Your Individual Tax Return?