How and when to report tokens that went to 0?

[Paul_ES]

Hi there,

I’m based in Spain and I owned some tokens that have pretty much no value or they can’t be traded (no liquidity or fees higher than the remaining value).

How should I report this? As a loss? Which date should I use?

Thanks in advance,

Pablo

[Carl_Koinly]

Hi @Paul_ES

Thanks for your message.

There are a couple of ways to handle these, take a look at the article below under the heading ’ Rug pulls, NFTs that are completely worthless and illiquid (cannot be sold anymore)’:

https://support.koinly.io/hc/en-us/articles/9906088360092-Spam-tokens-worthless-NFTs-rug-pulls

If you run into any problems, or have any questions though, just give me a shout.

[Paul_ES]

Hi @Carl_Koinly ,

Thanks for redirecting me to the documentation.
Do you know which of the 2 solutions presented is the right one in the case of Spain?

Cheers,

Paul

[Carl_Koinly]

Hey @Paul_ES

Hmmm good question. I’ve checked our Spain 2024 Tax Guide and we have no info on ‘lost’ tokens. I would advise checking with your local tax authority to confirm if you’re allowed to claim it as an immediate loss (second option - no Lost tag).

I realised I didn’t mention which date to use before. Generally, it’s the date that you were no longer able sell them (for your KuCoin tokens this would be easier to find, as it will be May 28th 2023 when they were unlisted).