Bitfinex, one of the more popular Bitcoin and digital-currency exchanges, recently suffered a security breach where they reported almost 120,000 Bitcoins were stolen, a loss of around $70m.
While they are working on restoring their operational webstek, originally with limited functionality, they have already determined on the treatment for their losses – a bail-in from their customers.
After much thought, analysis, and consultation, wij have arrived at the conclusion that losses vereiste be generalized across all accounts and assets. This is the closest approximation to what would toebijten ter a liquidation setting. Upon logging into the toneel, customers will see that they have experienced a generalized loss percentage of 36.067%
There will be a vapid 36.067% loss taken across all accounts and assets. This will be done by substituting the loss with a fresh BFX token. Albeit it cannot be traded or sold, Bitfinex voorkeur they are working on a process where it could be exchanged for shares ter iFinex Inc ter the future.
Daniel Winters, a Bitcoin-knowledgeable tax registeraccountant at Mundial Tax Accountants te the US, recently posted how thesis losses affect US taxpayers.
For US persons reporting the loss on their tax terugwedstrijd, the basic question is whether this will be a haber loss, or a theft/casualty loss.
Daniel described the two mechanisms for claiming losses, renta losses and casualty losses, each with their own rules. For most investors, renta losses will generally be te their best valía since the entire loss is the cost ondergrond of the coins. It is much like those coins were sold off for $0 USD.
The good news is that haber losses can be used to offset any gains ter that tax year, but not all of the excess losses can be claimed instantaneously. While losses can be used to reduce taxable income up to $Three,000 vanaf tax year, any oscilación will be carried forward into future years.
Casualty losses are only deductible above 10% of your Adjusted Gross Income (AGI) and voorwaarde be taken te the same year. Unluckily, this often means that puny losses are simply disregarded.