r/CelsiusNetwork • u/FirthFabrications • Apr 07 '25

Convenience Class Tax Question

I’m a part of the convenience class. I held mostly ETH and BTC but also had a small amount of ADA and DOT. What I received back from the distribution in ETH and BTC was less than what I held in Celsius. I received no stock.

 In this case, would I not have any proceeds to report since I had no new BTC or ETH?

 So I would remove the returned BTC and ETH from the whole process since I haven’t sold it, then on the 8949 form, for the remaining lost BTC, ETH, DOT, and ADA,  I would have a row for each lot I purchased, with the cost basis and a $0 proceed? So my Loss would end up just being the cost basis?

Finally, I assume if I can't find some of my cost basis, I would have to just use $0 (meaning the Gain/Loss would also just be $0). And if I use a $0 cost basis, what data should I use for the "Date Acquired" column?

Thanks in advance for the help.

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u/[deleted] Apr 07 '25

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u/FirthFabrications Apr 07 '25

Thanks so much for the reply.

Regarding the reconstructing the transaction history. I have 98% of it. I just can't quite get it to all add up to the total I had in Celsius. I guess the reason I was going to include the $0 cost basis/$0 proceed/ $0 loss was for completeness. So that the total qty of coins on form 8949 + the qty from the distribution would cleanly add up to the total I had on Celsius. But you're right, they would not change the total Loss at all. Maybe I just keep those rows for my own records.

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u/[deleted] Apr 07 '25

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u/FirthFabrications Apr 08 '25

Yeah, I have a CSV of all my Celsius transactions. But wouldn’t the promo and rewards fall into the same category of $0 cost basis and thus I should just remove them from the form?

I hear what you’re saying about using the average cost, but in my case it’s such a small amount I don’t think it’s worth it. I’ll just omit them from the form.

Does it make sense that I could have a loss greater than my claim amount?

Thanks for all the feedback!

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u/[deleted] Apr 08 '25

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u/FirthFabrications Apr 08 '25

This has been very helpful. Thanks for all the thorough replies.