Report crypto transactions without the history

Forum|Forum|3 years ago
March 7, 2023
1 reply
5 views

I have made a few USDC deposits into the Celsius platform and it has been earning weekly interests in USDC before the company went bankrupted. I have not been manually tracking any of these transactions and now I cannot access the Celsius platform app anymore.

Am I eligible to report all the deposited USDC funds in this platform as a capital loss? If so, can I just report a total loss amount since I no longer have the individual transactions?

TurboTax Premier Online

fanfare

Level 15

you can't write it off until it is certified 100% that you can never recover.

The bankruptcy proceedings could recover some fraction of your funds.

yatoshuraAuthor

Level 4

What kind of proof do I need to get for the loss to be certified to claim on my tax return? It seems like the bankrupt case is still ongoing since last year and may continue for a number of years.

@fanfare

Vanessa A

Level 15

When the bankruptcy case is discharged, you will then have your final answer of if you will receive anything or if it is a total loss. That will also be your proof as bankruptcies are public record.

Also, in order to determine your loss, you would need to have some type of tracking or evidence of your investment/deposits. Your unrealized earnings that you have never included in taxable income is not considered a loss so you would not be able to take any type of loss for them. If however, you did report the earnings in your taxable income and they were reinvested, when it becomes completely worthless, you would be able to also include the earnings.

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