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December 1st, 2021 you buy $1000 worth of Coin1 with cash. It pumps 100x. Dec 31st, 2021 you’re up $99k, don’t sell but trade it all directly for Coin2. Jan 1st, 2022 Coin2 gets hacked and loses 99% of its value. April 18th, 2022 taxes are due for 2021. How much do you owe?

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Jesse Powell

@jespow

Replying to

@IamNomad

You created taxable income at time of trade Coin1 for Coin2. You could realize some losses by selling Coin2 but it’s too late to claim the deduction in 2021z. You will get to carry forward losses but you’re screwed if you don’t have a bankroll to pay 2021 taxes on your 0 gains.

12:14 AM · Apr 21, 2022Twitter for iPhone

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