When I sent ADA for a mint of an NFT and the mint failed and the ADA is returned to me it shows as “sent” and “deposit”. On the “sent” the tax is calculated according to FIFO. How do I mark this a failed transaction/mint? Surely this should not go towards FIFO, taxable event since the money didn’t move hands?
It’s important to note that this is not intended as tax advice and we highly recommend consulting with your CPA. However, from a technical standpoint, if you want to eliminate the gains from your withdrawal (selling at market price), you have two options:
A) You can delete both the withdrawal and deposit transactions and only keep the associated cost.
B) Instead of deleting the transactions, you can label them as “add to pool” and “receive from pool”.