RobertB4444
Expert Alumni

Get your taxes done using TurboTax

When an investment goes bankrupt then you report the sale as a loss.  You put in the purchase date, the date that you bought the digital asset, and the purchase price, the amount that you paid for the digital asset.  (If your digital asset became worth a lot more after you paid for it and then you lost it you aren't getting a tax credit for it.  Only for the actual loss.)

 

Then you put in the sale date, the date that you were made aware that the original investment had become worthless, and the sale price, the amount that you were compensated for the investment becoming worthless (this can be - and often is - zero).  

 

In your case you received a 19% return of digital assets plus some stock as compensation for the original digital assets.  You need to enter the value of those on the day that you received them as payment received.  That value becomes the basis that you have in the new digital assets and the stock for when you sell it later.  

 

@JFAnSC 

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