Describe the problem:
I have various crypto lost via Celsius bankruptcy. I created manual transactions to send all of that crypto out of the celsius wallet and marked it as “lost.” I calculated the cost basis of all of that lost crypto and allocated it to BTC, ETH, and NULL (for Ionic shares) distributed. I created manual transactions to deposit the amounts of BTC, ETH, and NULL (Ionic shares) distributed and set the network and the allocated rebase of cost basis. However, on my tax reports Koinly treats these deposits as income. How do I mark these deposits as non-taxable?
In the alternative, if I create deposits the amounts of BTC, ETH, and NULL (Ionic shares) distributed and set the network and the allocated rebase of cost basis in another year (like 2022 when the original coins were lost) so it doesn’t show up as income in 2024, then transfer it to another wallet in 2024. It does not keep the correct cost basis because its using HIFO settings.
I need to make a deposit or transfer in 2024 with a specific cost basis (the rebase amounts) without it being treated as income. How do I do that? There must be some override.
I’ve already read and used this article so referring to it will not be helpful.
https://support.koinly.io/en/articles/9489997-chapter-11-reimbursements-celsius-voyager-mt-gox
The example for “reimbursement as a rebase” in this article is exactly what I did but the “deposits” become income on my tax reporting. It is not income.