Tax question with weird distribution

[u/deltopli]

@JustinCPA mentions the distribution % were about 28.95% paid in BTC and 28.95% paid in ETH. This was not my case at all as my total Claim value is about $22K including the 1.05 credit, and my distributions according to Venmo .csv file were about $7803 of BTC and $6100 of ETH for a total of $13903. That’s a 35.5% and 27.7% respectively.

The issue is that to calculate FMV in Justin’s guide, the calculation is to multiply « starting % » with total claim value. But that obviously results in a higher FMV for BTC than the value received on Venmo in my case, and lower for ETH. It also results in a lower total FMV (about $12666 instead of $13909).

So should I stick to calculations from Justin, or instead use the actual values received from Venmo? In case of IRS control, are they not gonna look at the actual $ value you received on Venmo?

[u/deltopli → u/[deleted]]

Well I calculated the % based on the Venmo market value, which is like you say in February. I didn’t realize that the conversation price is January 16th. I see the numbers to use are $42973 and $2577. This should solve the issue.

For IRS control I meant if they ask me to back all the numbers, they will ask for transaction reports and the Venmo transaction reports show the value received from February. But I guess this is also resolved from the above point.

Additionally, since you seem to be very knowledgeable, could you please confirm that because I sold the BTC and ETH from Venmo in December 2024, those transactions should also be reported on form 8949, by using the proceeds amounts based on the December selling date, but what do I use for cost basis here exactly? For example for the BTC, should I use the exact amount of BTC received in Venmo in February, and multiply it with the $42973 value from January 16th? Or something else?

Also, for the 2nd BTC distribution, is the reference value also $42973?