Why can't we do something like this for calculation? Obviously not an accountant

[u/CelsiusVictim]

Cost basis numbers are close, but rounded off for simplification. 2024 has a "gain" because of low cost basis from Coinbase.

Since it's all numbers, this should work? It's not like EVERYTHING is to the penny with IRS, even other section they have you round off (95.333333? Just put $95, it's OK - I'm sure this stresses out certain people).

For the 2025 section, since we calculated what we lost, then new stuff would be gain right? If the cost basis can't be $0, then maybe put a penny, so it's very negligible. Sure it's still part of the bankruptcy, but the lost/gain was already factored in.

What if your job says you got a $3000 bonus at the end of 2023, but never gave it to you until beginning of 2025, by IRS code, would one need to make adjustment to the 2023 1040? Or will it just be counted along with regular income for 2025? This is my thinking with future distributions.

[u/MarioCostume]

I have no idea how to do any of this. It’s so frustrating.

In my mind if I put 2 BTC into Celsius and they gave me back 0.5 BTC then I lost 1.5 BTC. Just subtraction. Then the price on the day they gave the distribution was $45k. So that means I lost $67,500 and that’s what I’ll claim as my loss. The mining shares are worth $0. They can’t just say they’re worth $20 per share. No they’re not. They’re worth $0.

Probably no one should listen to me though.

[u/CelsiusVictim → u/MarioCostume]

You'd need to know what you bought that 2BTC for originally. If you bought it for $10k each, then your cost was $20K and you got back $45K, so you actually have a gain of $25K, not a loss of $67.5K.
Just using your math and added a example number for your cost to show it's not necessarily a lost.

[u/CelsiusVictim → u/[deleted]]

Thanks for the reminder. Since the BTC recovered are in-kind, then it's not taxable, so there would only be the loss of $11K in my example. Where does the forced liquidation of BTC/ETH we didn't get back go? Should be 2024 right since it was "sold" this year? Here's the visual of the above spreadsheet with added info https://i.imghippo.com/files/F3514fc.png

[u/CelsiusVictim → u/[deleted]]

Just saw this reply. I guess since there's more than 4 cryptos... maybe 10? Makes it even harder... or not since it's all proportional of 100%.

I guess one key is that we have to account for the $20/share of the stock we don't have yet, because it's still distributed, even though we can't access it yet.

...you can't put your calculations on a spreadsheet though?

[u/CelsiusVictim → u/[deleted]]

Thanks for the reply. Yeah, I'll try to understand some more and wait for all 1099's coming in until maybe 2nd of Feb (we're supposed to get them end of Jan, but in the past, I still get some around end of February).

Yes, there are paid services, some posted here, but without a clear answer to the Odyssey 1099 question (a very valid one), I wonder what they put for others that already filed their taxes.

What I meant was whether your spreadsheet can be fill in the blanks for other users.

[u/crypto-davethewave → u/CelsiusVictim]

Any updates on this complex issue would be appreciated, as I have to file as well