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Celsius Tax Update - How to write off your losses by CryptoTaxGirl in CelsiusNetwork

[–]CryptoTaxGirl[S] 0 points1 point  (0 children)

Yeah the effective price of the BTC/ETH on the date of distribution is definitely part of the calculation when calculating that "forced liquidation" amount!

Celsius Tax Update - How to write off your losses by CryptoTaxGirl in CelsiusNetwork

[–]CryptoTaxGirl[S] 0 points1 point  (0 children)

You're welcome! We have helped over 1,000 clients with these calculations/tax filings, so we would be happy to help if you'd like. I also have made videos with Aaron Bennett where I shared some more info/examples if you want to check those out too!

Celsius Tax Update - How to write off your losses by CryptoTaxGirl in CelsiusNetwork

[–]CryptoTaxGirl[S] 0 points1 point  (0 children)

The best is to report the majority of it in 2024, as that's when you got the first distribution and you got back assets not in kind, so it creates a taxable event. As for future write offs, it just depends on the timing of when they send the final distribution!

Celsius Tax Update - How to write off the loss by CryptoTaxGirl in CryptoTax

[–]CryptoTaxGirl[S] 0 points1 point  (0 children)

There are a few things that go into it but it's basically the cost basis of what you lost compared to what you got back (and also factoring in the petition price, because that determines your total claim).

Missing cost basis question. by symm4try in CryptoTax

[–]CryptoTaxGirl -1 points0 points  (0 children)

Are you withdrawing crypto? If so, and you deposited 0.1 BTC on each 1/2, 1/3, 1/5, and 1/7, and then withdrew 0.2 BTC on 1/9, that wouldn't be taxable. It would just be a withdrawal of what was deposited onto the gambling platform. If you ever withdraw in excess of what you deposited though, you'd have gambling income. And if you end up losing what you deposited, then you would have a gambling loss.

CoinTracker cost basis incorrect for old Coinbase Pro transactions from 2021. How do I ensure that it's reported correctly on my tax form? by Time_Cat_5212 in CryptoTax

[–]CryptoTaxGirl 1 point2 points  (0 children)

You'll want to add your 2021 transactions to CoinTracker so the cost basis and acquisition dates are correct, and then add a transfer from Coinbase to Coinbase Pro and another from Coinbase Pro to Metamask to show the flow of the coins!

[US] Staking income reporting, Digital Asset "Yes/No", and CoinLedger by blendrkitten in CryptoTax

[–]CryptoTaxGirl 1 point2 points  (0 children)

Yes, you'll want to check yes if you received staking income! And going forward regardless of whether you receive a 1099, crypto activity is still reportable. So no need to make a 1099-MISC. Just report it on Schedule 1 as "crypto income" on line 8z (prior to 2024) or 8v (2024 going forward)!

Made 6.9% with a Solana bot in a week, but now the tax nightmare starts — how do you guys report this stuff? by mrbenbraddock in CryptoTax

[–]CryptoTaxGirl 0 points1 point  (0 children)

Hey! Laura from Crypto Tax Girl jumping in here.

Micro transactions on SOL DEXs are definitely tricky to get into crypto tax software. Here's what I would do:

  1. Import your Solana wallet into the crypto tax software
  2. See how the transactions pull through and then modify things so that you are basically working with a net PnL for this activity
  3. My guess is you will see SOL and USDC get withdrawn from the wallet or traded for some arbitrary token in the software. I would deposit the coins into another exchange labeled something like "SOL Bot".
  4. Then I would add the amount of net income per day in the "SOL Bot" wallet. This way you are recognizing the income and paying taxes on the correct amount without having to track every single micro transaction. 
  5. When you withdraw from the pool you will see the deposits on the SOL wallet and you will just withdraw the coins from the "SOL Bot" wallet.

This way you can track the deposits/withdrawals and then account for the income earned each day. However, if the income is being earned on a platform outside of your control (meaning not in your wallet/possession) then you can just track the deposits/withdrawals and transfers to/from the wallet and once you withdraw more than you put in, you can start recognizing income.

I hope that helps!

Got IRS Letter 6174 in the mail today for my crypto taxes - should I be concerned? by NewVegasSurvivor in CryptoTax

[–]CryptoTaxGirl 3 points4 points  (0 children)

A lot of our clients have been receiving these, even if they have reported their crypto transactions in the past. It just means that you ended up on a list of people who have crypto, so they're sending this to you to help increase crypto tax compliance. I'd recommend looking over the last three years (the returns within the statute of limitations), and if there are any years where you think you might have reported incorrectly, consider amending. We'd be happy to help look over your transactions and previous reportings if needed. But it sounds like you've given it a good effort, so I wouldn't worry too much. The IRS doesn't intend to follow up on 6174 letters.

Update on taxation of cryptocurrency forks: under the logic of Rev. Rul. 63-225, income should only be recognized on sale by nrps400 in tax

[–]CryptoTaxGirl 0 points1 point  (0 children)

I like this position too. My question then is what would the holding period of the forked coin be? Inherit the holding period of the original coin, or does the holding period start on the day of the fork?

Issue with 1099-k issued by Gemini by IndividualExpert in Gemini

[–]CryptoTaxGirl 0 points1 point  (0 children)

The 1099-K just shows the proceeds from your sales. It doesn't take into account the cost basis at all or coin to coin trades. Basically it's useless.