You already paid 100% tax.
Do you really still owe the IRS too?!
Rugged for 10 SOL (~$1.5k)
Got 0 PAWSE
IRS might deny a theft write off, but here's how you might still claim the loss 👇
2/ Although it feels like you just had your SOL stolen by Ansem, that's not the right way to think about it.
At least if you want to write it off.
The IRS limited theft-loss deductions in '18 for individuals.
Your SOL? Gone.
Your deduction? Denied
Unless you do this 👇
3/ Your gain or loss is calculated by taking:
Value of proceeds - Cost basis
Since you received no PAWSE, the value of proceeds is $0
If your 10 SOL was bought at $200/SOL you have a $2k cost basis.
This nets out to a $2k loss!
But it requires some work.
4/ Crypto tax software will usually assume that the 10 SOL you sent was disposed of for fair market value.
So in this case, if you don't document the rug - you're rekt,
The software will assume $1500 proceeds - $2000 basis = $500 loss.
Not quite as good, so what do you do?
5/ The steps to make sure your full loss is reflected:
1)Ask your tax advisor for help, this post isn't tax advice ;)
2)Change the value of outgoing SOL to $0 in the tax software.
3)Keep evidence that the contract had 100% buy tax in case IRS comes sniffing later.
6/ What if Bullpen refunds later?
It's unlikely to happen in crime szn.
But any future recovery = taxable gain (or income) in that year.
Claim today's loss, and adjust if money returns later.
18
10.02K
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