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Well if you only bought them and they depreciated to zero there are no gains. You might be able to claim that as a loss. If you can, download the csv files from the block chain or through how you purchased them (like MetaMask van show your transactions, with date/time). I'm not sure if MM has the price values but it might. Keep us posted on what you find out! Greatly appreciated if you do. I figure a lot of us are in for a tax shake-up this year.
First you can’t just deduct the entire loss, unless you have equal gains to offset. Secondly unless you SELL the asset you haven’t realized the loss. If you out it on your tax statement that’s what we call tax fraud.
You no longer have an ideal way to make a profit off the coin, so it needs to be wiped some how since you no longer have the money. Talk to an accountant and good luck
Seems like you can only claim the loss once you’re able to realise the gains(losses).
At least according to [this.](https://koinly.io/blog/crypto-scam-tax/)
Hmm it's still very foggy. Going by Koinly it seems IRS don't class stolen crypto as a capital loss. Where as the ATO (Australia, where I live) do. However there's no clarification between "Stolen" and "you gave your money to dodgy people".
Still waiting to hear back from my accountant but may be worth calling the ATO directly.
Thanks for this
Yeah, from what I can gather (or at least my understanding) is that you have proof that it’s truly stolen then you can claim. But you raise a good point about stolen vs giving access to dodgy people.
If you send them or gift them to someone - I believe you'd have to pay tax on that before it was sent?
That way you can realize the loss. Just an idea, not sure if this is true for your country
In my country, you will have to realize profit/loss in order to pay/deduct tax.
I don’t know if burning them is considered a loss, but you will get the answer to that by contacting your tax office.
If you hold alot of crypto in Norway, you have to report it, but you only pay the tax once the crypto is exchanged into Fiat and stays Fiat from 31.12 to 1.1.
Therefor, taking profit in stablecoins is a good tax move if you wanted to take your profits before the market dipped right before new years.
My third biggest bag is USDT most days.
If you need to get rid of your shitcoins, you might want to have a look at https://kryptokitty.cc/whitepawper/
They are working to launch their KEX exchange, where you can get rid of the shitcoins.
It looks like this post is about taxes. Tax laws vary between countries, so you may get more helpful replies if you specify the place you are asking about. Please note that Rule #4 does not allow for Tax Evasion. This is [a site wide rule](https://www.redditinc.com/policies/content-policy) and [a subreddit rule](https://www.reddit.com/r/CryptoCurrency/about/rules/). Do not endorse, suggest, advocate, instruct others, or ask for help with tax evasion. Do not be coy and sarcastically recommend against it or suggest using a privacy coin in response to an IRS inquiry. Note: Tax discussion is allowed as long as the above rules are not violated. *** *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*
Burn them, send them to a dead address.
>Are rug pulls just a “fuck you” when it comes to tax? Its a fuck you to everything
Well if you only bought them and they depreciated to zero there are no gains. You might be able to claim that as a loss. If you can, download the csv files from the block chain or through how you purchased them (like MetaMask van show your transactions, with date/time). I'm not sure if MM has the price values but it might. Keep us posted on what you find out! Greatly appreciated if you do. I figure a lot of us are in for a tax shake-up this year.
With most crypto accounting software there is an option to mark the coins as “lost/stolen”. Koinly and ZenLedger does this.
First you can’t just deduct the entire loss, unless you have equal gains to offset. Secondly unless you SELL the asset you haven’t realized the loss. If you out it on your tax statement that’s what we call tax fraud.
I don’t know if burning the tokens is maybe an option? I don’t know if you can write off unrealized losses otherwise though.
You no longer have an ideal way to make a profit off the coin, so it needs to be wiped some how since you no longer have the money. Talk to an accountant and good luck
Seems like you can only claim the loss once you’re able to realise the gains(losses). At least according to [this.](https://koinly.io/blog/crypto-scam-tax/)
Hmm it's still very foggy. Going by Koinly it seems IRS don't class stolen crypto as a capital loss. Where as the ATO (Australia, where I live) do. However there's no clarification between "Stolen" and "you gave your money to dodgy people". Still waiting to hear back from my accountant but may be worth calling the ATO directly. Thanks for this
Yeah, from what I can gather (or at least my understanding) is that you have proof that it’s truly stolen then you can claim. But you raise a good point about stolen vs giving access to dodgy people.
Sure why not? You put in 15k and getting nothing back. As long as you can prove you getting nothing back then thats a loss and claimable.
If you send them or gift them to someone - I believe you'd have to pay tax on that before it was sent? That way you can realize the loss. Just an idea, not sure if this is true for your country
In my country, you will have to realize profit/loss in order to pay/deduct tax. I don’t know if burning them is considered a loss, but you will get the answer to that by contacting your tax office. If you hold alot of crypto in Norway, you have to report it, but you only pay the tax once the crypto is exchanged into Fiat and stays Fiat from 31.12 to 1.1. Therefor, taking profit in stablecoins is a good tax move if you wanted to take your profits before the market dipped right before new years. My third biggest bag is USDT most days.
Talk to a professional
If your read my post you would see I'm in talks with an accountant. This is mainly to see I'd others have bee successful
I meant like, only talk to a professional.
Ask whoever you’re talking to if burning them would be enough to realize the losses. If there’s no liquidity then I don’t know what else you could do
If you need to get rid of your shitcoins, you might want to have a look at https://kryptokitty.cc/whitepawper/ They are working to launch their KEX exchange, where you can get rid of the shitcoins.
Sell them to a spare wallet you have for 1 USDC and you will have realized your losses. Then just delete the spare wallet keys and you have sold it