Finally got some small % coins back from the settlement into paypal. How do I reporot what I lost? for example: 1eth held and now I got back only .35eth what to do?
1 Like
It depends in what country you are in. If you are in the US, you can’t deduct the loss, the following is from the Koinly blog:
“For casualty losses, the IRS guidance is very clear. Prior to the Tax Cuts and Jobs Act of 2017, these used to be deductible as a loss. However, since the tax reform, the only way a casualty loss could be tax deductible is if it’s a federally declared disaster - which isn’t likely to ever affect your crypto!
The best thing you can do is simply write it off and disregard it from your calculations entirely.”
What I am doing is just subtract from what I received from the settlement through paypal from my original amount I had with Celsius and tag the difference as lost. Just go to the dashboard on Koinly and look at the Celsius wallet and you can find your original amount there. This way at least it is not included in your cost basis and does not give an erroneous profit o loss.
If I am wrong in this, please correct me. I think we all just want to get out of this mess and move on.
1 Like
Yes I am in USA. So you are suggesting just do a withdrawal transaction from celsius in the amount that you lost. how will that be reflected on taxes?
Spock40982, I like your answer, but my Celsius wallet is set to “Sync”, so my “Calculated Balance” is correct ($0), but my “Reported Balance” stayed the same as when Celsius went bankrupt. The Dashboard incorrectly shows the “Reported Balance” in my total. Is there any way to make it reflect $0?
I think you’re looking for a way to ignore reported balance.
https://support.koinly.io/hc/en-us/articles/9906116068764-API-sync-Ignore-reported-balances
That should do exactly what you’re looking to do.
Disable the API - go to the API Settings menu and it should show the option
Ignore reported balance does not get rid of the yellow icon for balance error @layze23
This can be handled a variety of ways.
Do you want to preserve the cost-basis and holding period of the orignal 1ETH, by transferring it to the .35 ETH?
This would ultimately let you claim the loss on any future disposals of this ETH.
OR, you can realize a loss for the whole 1 ETH, then add a Deposit for the 0.3 ETH and treat its cost as its market value.
Ultimately, as others have pointed out, you should confirm via your tax authority on which is the compliant method of handling it. 
This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.