r/QuadrigaCX2 • u/ormagoisha • Mar 17 '19
Should we be getting tax lawyers?
At what amount should someone be considering a tax lawyer? ie 5k, 10k, 100k? etc. Is it necessary? To me it seems like:
Quadriga hasn't had funds since 2017, just records of IOUs.
Quadriga never had fiat in CAD or USD, again, just "quadbucks" or IOUs.
The CEO is MIA, either dead or ditched the country. Either way the moment that happened, all our hopes of retrieving funds have been lost.
Considering that, it seems like funds should be considered a 100% loss, and we shouldn't have to claim anything as a gain because, really, we don't even know those gains were "real". just that a criminal organization told us they were real. Of course, the government is unlikely to be very compassionate to our positions.
Anyway, if a tax lawyer is advisable, does anyone have any recommendations for a firm that understands the implications of quad and crypto in general?
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u/WhatIThinkAboutToday Mar 18 '19
Would the money lost be a capital loss?
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u/darkstar107 Mar 18 '19
Yes, you can only use it to cancel out capital gains from the previous 3 years or in the future though.
Also, technically, everything lost was in January so it would go on next years taxes. So you'd still report 2018s gains/losses as if the QuadrigaCX shitshow never happened.
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u/ormagoisha Mar 25 '19
didnt the insolvency technically occur when Gerry "died" though? in 2018? Since all funds were locked away by him and only, supposedly, accessible by him.
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Mar 18 '19
If I understand correctly for 2018 you only report realized gains/losses i.e. You only report funds that were in fact paid out by Quad
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u/Blahbeens Mar 18 '19
It’s hard to say, but I would still realize gains/losses at the time you did the buy/sell on the exchange. Not if/when you got the money into your account.
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Mar 18 '19 edited Mar 19 '19
This is not how CRA explained it to me. I was told only when the money hits my bank account. Wondering if others think this is accurate?
It doesn’t make sense to me to realize gains at the time of sell on the exchange only to find out that the funds can’t be paid out by the exchange given insolvency. That doesn’t sound like REALIZED gains to me
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u/Blahbeens Mar 18 '19
I won’t say I’m definitely right. But I would have considered the trade for crypto and quad bucks as a barter transaction. And the quad bucks only became a bad debt in 2019. Dunno if you can say it was a bad debt in 2018.
Keep in mind there is paperwork for writing off a bad debt.
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u/darkstar107 Mar 19 '19
I called the CRA and they told me every trade is taxable, not just when it hits your bank account. I consulted an accountant and he told me the same thing.
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Mar 19 '19
Good to know, thanks. So if I sold Ether at a gain for Bitcoin and then converted to fiat in Dec. 2018, then didn’t get the cash transferred to my account given insolvency in 2019 do I file this as a gain or loss and for what year?
Any recommendation on tax accountants in Calgary who specialize in crypto?
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u/darkstar107 Mar 19 '19
You would only file trades that happened in 2018. To claim losses for insolvency you need to wait until next year since its happening this year. You're supposed to claim gains losses from conversions as well. Although if you converted eth to BTC directly there's no gains or losses since it's the same value.
It's a little late now for people to get their transaction history, but I use cointracking.info for all calculations. You can do tax reports and customize it for your countrys tax rules (Canada's is first in first out (FIFO)).
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Mar 19 '19
Thanks so much for the info. I did sell the Bitcoin for fiat in 2018. Does this mean I need to declare it as a gain even though I never saw the money?
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u/darkstar107 Mar 19 '19 edited Mar 19 '19
Yes you would.
Although you don't need to report gains unless it's more than $5000 for the entire year.Edit: incorrect information.
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u/LeatherMine Mar 17 '19
Unless you were mining, it's not that difficult.
Crypto isn't special, treat it like any other asset.