Voyager Digital, LLC went bankrupt within the last few years.
As part of their chapter 11 proceedings, they did the following:
1. Swapped / exchanged my 4.02 VGX tokens for USDC.
2. Then swapped / exchanged my USDC balance for USD (dollars).
How do I report this in TurboTax? I have the transaction details with token quantity, price per token, cost basis, etc but I cannot find any details reporting swapping / exchanging one crypto for another.
Thank you.
The swap consists of the "sale" of one for the purchase of another. You will need to report VGX as a sale under Investment Income.
Thanks. That's what I just ended up doing.
When VGX -> USDC swap / exchange occurred, the acquire date of VGX tokens is the airdrop date from 2021 (which I already reported as income from tax year 2021) & the sell date is the swap / exchange date in 2023 when it was converted to USDC. The buy & sell cost basis' is the dollar value of the VGX tokens on those acquire & exchange dates.
Likewise for the subsequent USDC -> USD swap / exchange, the acquire date is the same date as the aforementioned VGX -> USDC swap / exchange in 2023 & the sell date is also in 2023 per the transaction report. The buy & sell cost basis' is the dollar value of the USDC token on the above 2023 exchange & sell dates.
Thus, two swaps / exchanges, so two sell transactions.
I'll mark this as closed.
Thank you.