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So - do we just report this as cap gains loss? How does this work in the States? As far as I can tell, my investment in this went to $0. Edit: Apparently in th

by ar_lan 4y ago

So - do we just report this as cap gains loss? How does this work in the States? As far as I can tell, my investment in this went to $0. Edit: Apparently in the US, any capital loss due to loss or theft is not considered taxable capital loss, so I guess I'm just SOL. I'm glad I had diversified and my Celsius losses were only 25% of my crypto (of which, at the time, was only 3% of my total investments overall). I've completely exited crypto since this debacle and sticking with boring VTSAX and VTIAX entirely.

xeromal 4y ago
I got burned during the Mt Gox era and I feel like a crazy person for asking all my friends to get out of crypto. I've been a boring ETF guy since.
- kirbypineapple 4y ago
  The funny thing is that when the trustee pays out the remaining BTC from Mt. Gox back to creditors, you're going to have some massive gains.
  - xeromal 4y ago
    I completely forgot about that and just read that they have 192,000 bitcoins in the trustee. Wow I occasionally kick myself for buying weed using bitcoin like it's intended purpose in those days. I had quite a bit. lol.
    - bbarn 4y ago
      I got a really sweet carbon fiber bicycle from the coins I mined. Figured there was no way they'd ever go higher than 20$ and it was basically free money. Looking back, sure, I could have retired on that sum if I'd held it, but at the time, I had no reasonable expectation that it would be anything but a fad. Won a few races on that bike, and met my wife on the race team. Net win.
      - giantrobot 4y ago
        "Sometimes, not often, but sometimes I wish my wife was still Bitcoin."
      - rafale 4y ago
        Gives a new meaning to "wife changing gains".
RC_ITR 4y ago
The trump tax cuts removed loss from theft and third-party business failure as permissible write-offs. You just gotta eat it.
- pirate787 4y ago
  This is a positive tax reform. Why should taxpayers cover losses from people doing little due diligence or placing reckless bets with shady companies?
  - RC_ITR 4y ago
    Well, for one, the thieves have to claim it as income. For two, I made no judgment, just stated facts.
    - TedDoesntTalk 4y ago
      It’s not a loss if it was never realized; if he never converted coins to fiat at a loss from the purchase, there is no loss except on paper (and that is not tax deductible).
      - deleted 4y ago
        [deleted]
      - deleted 4y ago
        [deleted]
      - RC_ITR 4y ago
        >It’s not a loss if it was never realized If I hold stock in a company that goes bankrupt, I can write-off those losses, even though they never get converted to fiat.
    - amscanne 4y ago
      Doesn’t this support the opposite? Ever dollar I pay anyone for services must be claimed as income, yet none of those are capital losses for me. Conversely, none of my capital losses can be claimed as anyone’s income.
TakeBlaster16 4y ago
Not a lawyer, but my understanding is you can take a theft loss deduction. https://news.bloombergtax.com/tax-insights-and-commentary/victims-of-crypto-and-nft-fraud-can-take-theft-loss-deductions https://news.bloombergtax.com/tax-insights-and-commentary/vi... (Sorry for your loss.)
gorkish 4y ago
You can likely take a casualty loss deduction, but there are some requirements to meet.

by ar_lan 4y ago

xeromal 4y ago

I got burned during the Mt Gox era and I feel like a crazy person for asking all my friends to get out of crypto. I've been a boring ETF guy since.

kirbypineapple 4y ago
The funny thing is that when the trustee pays out the remaining BTC from Mt. Gox back to creditors, you're going to have some massive gains.
- xeromal 4y ago
  I completely forgot about that and just read that they have 192,000 bitcoins in the trustee. Wow I occasionally kick myself for buying weed using bitcoin like it's intended purpose in those days. I had quite a bit. lol.
  - bbarn 4y ago
    I got a really sweet carbon fiber bicycle from the coins I mined. Figured there was no way they'd ever go higher than 20$ and it was basically free money. Looking back, sure, I could have retired on that sum if I'd held it, but at the time, I had no reasonable expectation that it would be anything but a fad. Won a few races on that bike, and met my wife on the race team. Net win.
    - giantrobot 4y ago
      "Sometimes, not often, but sometimes I wish my wife was still Bitcoin."
    - rafale 4y ago
      Gives a new meaning to "wife changing gains".

RC_ITR 4y ago

The trump tax cuts removed loss from theft and third-party business failure as permissible write-offs. You just gotta eat it.

pirate787 4y ago
This is a positive tax reform. Why should taxpayers cover losses from people doing little due diligence or placing reckless bets with shady companies?
- RC_ITR 4y ago
  Well, for one, the thieves have to claim it as income. For two, I made no judgment, just stated facts.
  - TedDoesntTalk 4y ago
    It’s not a loss if it was never realized; if he never converted coins to fiat at a loss from the purchase, there is no loss except on paper (and that is not tax deductible).
    - deleted 4y ago
      [deleted]
    - deleted 4y ago
      [deleted]
    - RC_ITR 4y ago
      >It’s not a loss if it was never realized If I hold stock in a company that goes bankrupt, I can write-off those losses, even though they never get converted to fiat.
  - amscanne 4y ago
    Doesn’t this support the opposite? Ever dollar I pay anyone for services must be claimed as income, yet none of those are capital losses for me. Conversely, none of my capital losses can be claimed as anyone’s income.

TakeBlaster16 4y ago

Not a lawyer, but my understanding is you can take a theft loss deduction. https://news.bloombergtax.com/tax-insights-and-commentary/victims-of-crypto-and-nft-fraud-can-take-theft-loss-deductions https://news.bloombergtax.com/tax-insights-and-commentary/vi... (Sorry for your loss.)

gorkish 4y ago

You can likely take a casualty loss deduction, but there are some requirements to meet.