1/ With a potential @FTX_Official insolvency becoming very likely, some people already accepted their holdings on FTX to be lost. Sadly writing them off mentally will not count as a #tax offset - but there is a way... 🧵
2/ To harvest losses and lower potential taxable gains, they first have to be realized. This means those assets with pending losses need to be disposed of, either by selling them for FIAT or swapping them into another asset.
3/ As long as that did not happen, even if access to the funds is lost, there is still a legal claim to get them back. This means those losses are not realized yet and a lawsuit against FTX might possibly last years and heed no outcome.
An alternative would be enacting an OTC deal, selling the claim to those assets to another person, maybe even a specialized law firm. Usually, the price for such claims lies way below the market price of the asset.
So even if withdrawals are disabled, enacting a trade on FTX now will at least make the losses a reality from a tax perspective.
Also, don't forget to keep a copy of your latest transaction history (before the platform is potentially shut down)! Ideally by connecting your FTX API with your @blockpit_io account.
Add: There have been cases in the Mt. Gox fiasco, which accepted clear documentation of completely lost access to the platform as proof of lost funds. This could be worth a shot in convincing tax authorities, if a disposal or OTC trade is not possible.
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