I have some USDC deposited in the now bankrupted Celsius crypto firm for their high-yield earn program. Now that I can no longer claim my USDC deposit, will I be able to report that as a capital loss on my tax return?
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Yes, you have determined that you will not be able to recover your investment, you can report it as a loss. You will have to enter "sales" transaction" with $0 in proceeds.
Thanks for the response.
My fund has be inaccessible since last year when the firm made the public announcement so I have very little hope that I can recover it. If I claim the fund as a loss on my 2022 tax return and later on (perhaps years from now), I'm able to recover the fund, then do I need to amend my 2022 tax return to remove the claimed loss? What would the process look like?
You wouldn't have to amend your return. You would just claim it as a gain in the year you receive it.
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