An attempted blockchain operation that does not complete successfully. An included transaction may still consume gas even when its state changes revert.
A failed transaction moves no assets, so there is no disposal of the asset you tried to trade. The gas consumed is still spent: for an investor it is a small disposal of the fee token with no corresponding acquisition, generally a loss equal to the fee's basis less nothing.
Not as an expense for an investor. The fee is a disposal of the gas token for nothing, which realizes a small loss equal to its basis.
Source: No IRS guidance as of September 2026; IRS Notice 2014-21 (property treatment)
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
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