pls cite which IRC which explains this

Moreover, Jane opened a crypto wallet and invested $100,000 in cryptocurrency in January of 2021 . She also spent $2,000 in ordinary and necessary business expenses (i.e., $1,000 in commissions, $500 of fees for investment counsel/consulting services, $500 for statistical services subscriptions). In August 2022, Jane's records showed that she liquidated her cryptocurrency investments and lost $75,000 that year. Jane plans to claim the loss on their married filing jointly tax return for 2022. Note, Theodore and Jane did not sell any other investments during the year. Although Theodore and Jane are well-known for wielding hammers in battle (at least in mythology), studying (2) Can the Odinsons recognize a capital loss on Jane's sale of the cryptocurrency? [Note, consider whether the taxpayer can deduct the capital loss in full, or if not, then the tax treatment for the unrecognized amount.] Can the taxpayer deduct the ordinary and necessary expenses of $2,000 on Schedule A of their 2022 income tax return