You're welcome, @klhrabosky in reply to your earlier post!
In answer to your question, you'd need to adjust the cost basis to reflect the full investment.
I've reached out to Voyager and it would appear that the liquidation payout received represents the full investment--while previously, I thought there was still some value remaining.
To capture your full investment, there are two options.
*adjust the cost basis to be in accordance with your records
* follow guidelines at Coin Ledger here, specifically under the title How do you report a nonbusiness bad debt deduction?: https://www.cointracker.io/blog/what-are-your-options-for-reporting-losses-related-to-bankrupt-excha...
The portion that is not included in the Coin Ledger upload would be the portion to declare as worthless. Note that this guidance would classify the worthless portion as short term.
See https://www.irs.gov/taxtopics/tc453
"Nonbusiness bad debts - All other bad debts are nonbusiness bad debts. Nonbusiness bad debts must be totally worthless to be deductible. You can't deduct a partially worthless nonbusiness bad debt.
Report a totally worthless nonbusiness bad debt as a short-term capital loss on Form 8949, Sales and Other Dispositions of Capital Assets, Part 1, line 1. Enter the name of the debtor and "bad debt statement attached" in column (a). Enter your basis in the bad debt in column (e) and enter zero in column (d). Use a separate line for each bad debt. It's subject to the capital loss limitations. A deduction for a nonbusiness bad debt requires a separate detailed statement attached to your return. The statement must contain: a description of the debt, including the amount and the date it became due; the name of the debtor, and any business or family relationship between you and the debtor; the efforts you made to collect the debt; and why you decided the debt was worthless. For more information on nonbusiness bad debts, refer to Publication 550."
