Author

Topic: Can my MTGOX losses be declared as a loss on taxes? (Read 336 times)

sr. member
Activity: 298
Merit: 253
Seems to me that no solution has been reached in the Gox scenario.  How can you declare your losses if you don't know exactly what they are yet?  I would say you should see what the actual final settlement is before declaring losses.  As far as I know, nothing has been "realized" yet.


Nothing's been decided , the bankruptcy isn't even completed yet. The next creditors meeting in a few weeks might reveal if the civil rehabilitation is getting approved.

...

Wait another ~15 days, the next creditor meeting should clarify if civil rehabilitation gets approved or not (bankruptcy goes on).
The outcome may be known sooner, check the reddit mtgoxinsolvency in ~10 days.
https://www.reddit.com/r/mtgoxinsolvency/

If the civil rehabilitation gets approved the bankruptcy will settle the proceedings based on the price of bitcoin three years ago. That leaves $859 million left over for Mr Karpeles from the $1.3 billion recovered from Gox.

https://www.cryptocoinsnews.com/mark-karpeles-will-end-taking-859-million-mt-gox-bankruptcy/


That's why a group of creditors are considering further legal action to stop Mr Karpeles from getting the $859 million.

..., the https://mtgoxlegal.com group has formed, raised funds and grew to around 500 people in size since the last creditors meeting.

There are ways to prevent an unfair distribution and we're working towards that right now.

Further legal action could delay the bankruptcy for even longer, stopping anything getting "realized" for a considerable time,
legendary
Activity: 1148
Merit: 1008
If you want to walk on water, get out of the boat
That would be a bad idea and will possibly trigger audit depending on the amount. Within your range, nobody will probably notice that, but it's still bad idea.

Also if you haven't got 1099-K form (and IRS haven't got it) from Coinbase, reporting it to IRS can be a trigger of audit as well. No joke, they may even refund you this money back in a year/two with interest - under certain limits it's all done automatically with no humans involved on their side.
copper member
Activity: 2856
Merit: 3071
https://bit.ly/387FXHi lightning theory
Seems to me that no solution has been reached in the Gox scenario.  How can you declare your losses if you don't know exactly what they are yet?  I would say you should see what the actual final settlement is before declaring losses.  As far as I know, nothing has been "realized" yet.

Shouldn't it be treated as if your coins were stolen?

I think it's a bit more complex than that as they're still not giving a full outcome.

It probably should get classed as stolen though and at some point get classed as compensation if the funds are reimbursed. Though it may not be the cheapest way to do it as OP will have to pay more tax due to the bitcoin price increase.
newbie
Activity: 60
Merit: 0
Seems to me that no solution has been reached in the Gox scenario.  How can you declare your losses if you don't know exactly what they are yet?  I would say you should see what the actual final settlement is before declaring losses.  As far as I know, nothing has been "realized" yet.

Shouldn't it be treated as if your coins were stolen?
donator
Activity: 4760
Merit: 4323
Leading Crypto Sports Betting & Casino Platform
Seems to me that no solution has been reached in the Gox scenario.  How can you declare your losses if you don't know exactly what they are yet?  I would say you should see what the actual final settlement is before declaring losses.  As far as I know, nothing has been "realized" yet.
sr. member
Activity: 518
Merit: 250
Presale is live!
I think the taxes are calculated on an yearly basis and you are very late for that.
copper member
Activity: 2856
Merit: 3071
https://bit.ly/387FXHi lightning theory
From here:
"If not withheld by the employer, national income taxes are due in full by March 15 of the following year (mid April if you pay by automatic bank transfer)"

I'm guessing if you're going to declare it, it's a little late for that now (without having to take a penalty for it).



Onto the other issue, I'm not sure how compensation is normally taxed in Japan, but in other countries it is normally untaxable once it's rewarded. This amount, if ever reimbursed to you, is probably not taxable (although maybe Japan is different).



If you want to read into this a little further, I found this resource that breaks everything down quite well: https://home.kpmg.com/xx/en/home/insights/2011/12/japan-income-tax.html - although it might be a little outdated.
hero member
Activity: 601
Merit: 610
In 2014 when Gox went down, it took a lot of people's BTC with it. I am not looking for a discussion on what/why happened. I have been hodl BTC all this time, and at the end of 2017 I sold a little on Coinbase.

It's much below the level of USD$20k that is being bantered about, on Coinbase reporting to the IRS. If I sell in the future, I don't want the IRS to flag me as anything, and look back to say "Ah, in 2017 you sold a few fractions of BTC and did not report it", so I plan to enter it as long-term capital gains for 2017 (I've held it for more than a year and a day).



Jump to: