Celsius Bankruptcy/Distribution Solution
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P
Petur
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Hello everyone,
We have a couple of resources on how to handle Celsius distributions on Koinly.
Here is a blog that goes over the general concepts:
https://koinly.io/blog/celsius-bankruptcy-taxes/?_gl=1
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_ga_2YY60QTWGC*MTcyNzE2OTcyMS42MS4xLjE3MjcxNzU2NDkuNTIuMC4wAnd here is a detailed guide on how to handle the transactions on Koinly:
https://support.koinly.io/en/articles/9489997-chapter-11-reimbursements-celsius-voyager-mt-gox
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Electric violet Butterfly
Petur All that info is US specific.
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Cyan Pheasant
Petur, I have check all the links suggested, I would like to see the specific part on how to indicate in koinly the Stock part of IONIC @ $20 x share. and for the likely unrecoverable part of 20.80% of the final claim, how can this be show in Koinly.
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Electric violet Butterfly
Can't upvote this enough right now. It's in dire need. I'm having to look at competitors for this (I'm in the UK).
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Evergreen Reptile
Would love a step by step guide of options how to solve this using koinly or something built in like a bankruptcy label or something.
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Ivory Mouse
Celsius 'owned' the coins. It should be their taxable profit on my... their... MATIC! 😅
It would be great if each wallet could show a cost basis
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Biological Mockingbird
I'm US based so this may or may not apply for you. Not saying it's the correct approach but what I did was create a wallet in Koinly for Paypal (or Venmo whichever you received your settlement payment at). Then I did a manual Transfer entry for the settlement amount I received from my Celsius wallet in Koinly to the newly created Paypal/Venmo wallet. I then made a manual "Loss" entry for each of the remaining balances in my Celsius wallet. Koinly does not subtract Loss entries from your Capital Gains/Losses so I'm just going to tell my accountant about these losses and the amount and see if they can be deducted from my Capital Gains. Again, I'm no accountant but I think in the US I can only deduct my cost basis (what I originally paid for the cryptos lost) and not their value on the day I made the loss entry. Best bet is to talk with your accountant on how best to handle this tax wise but I think manually making the entries as I described above will get you straight with Koinly tracking at least.
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Vocal Canidae
Biological Mockingbird, This is what I did except tagged the manual entries for unrecovered crytpo as 'Realized P&L' with a note it's the write-off from the Celsius settlement. This will have Koinly calculate your losses and the cost average if you have more of those coins in your portfolio, using FIFO.
I am also no accountant but that's how I'm handling it for now until my accountant advises differently.
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Biological Mockingbird
Vocal Canidae, Hey thanks for the reply and another possible avenue for tracking this.
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Olive Orca
Biological Mockingbird Good info thanks! So for your manual Transfer entry, do you create one for BTC, and another one for ETH, since I think we all received both BTC and ETH in PayPal?
Let's say the settlement amount for BTC received is $200. Do you create your manual Transfer entry from BTC in Celsius to BTC in PayPal, or from another coin in Celsius to BTC PayPal? Thanks for any insights you may have.
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Biological Mockingbird
Olive Orca Very good question and I didn't initially consider this in my first response. So in my case I had more BTC deposited at Celsius than I got back in the settlement and I had more ETH deposited at Celsius than I got back in the settlement. If this is your situation then a manual transfer for each (one for BTC and one for ETH) from your Celsius Wallet to your Paypal Wallet will work then you mark all the rest of your Celsius holdings a "Loss" or "Realized Profit/Loss" in the manual entries you create. However, if you held tokens at Celsius other than BTC or ETH, or held tokens whose values in your settlement are over the amount of BTC and ETH you held at Celsius, this approach won't work for you. I'm not certain how you would go about tracking this situation. I'll have to leave that response to someone way smarter than me!
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Olive Orca
Biological Mockingbird So my situation is this: Let's say I had 500 USDC, 0.005 BTC, and 0.07 ETH at Celsius. I received 0.006 BTC and 0.09 ETH in the settlement, probably because the majority of my Celsius holdings were USDC. So I actually received a little bit more BTC and ETH in the settlement. I'm still thinking to do a manual transfer for each, and then the extra BTC and ETH amounts marked as income? Or marked as conversion from USDC as "Realized Profit/Loss"? I would be interested to know which is better way. Thanks again for any insights that you may have!
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Denim Porcupine
Olive Orca i created manual exchange/swap transactions for USDC into BTC and ETH with a guestimate split between them. This resulted in a loss on both 'swaps' so actual split did not really matter for me
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Cyan Puffin
This is vitally needed. There must be a standard way of dealing with the fact that we had. Retain tokens in the Celsius wallet and these are gone —100% loss. And replaced with newly issued BTC and ETH Are the tokens lost on Celsius a complete loss? And therefore the BTC and ETH we received have a cost basis of zero? Or are the Celsius tokens a loss of the difference between their value and the value of the BTC and ETH we received — and Gus so we calculate it ???
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Silver Eagle
Cyan PuffinThere is only reference to BTC and ETH in this chain. I did not have any ETH, but have received some along with my BTC. Are the other coins such as MATIC being converted to ETH ?
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Mammoth Pelican
Silver Eagle
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Green Clownfish
Same for what people receive in CoinBase