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 voorwaarde be generalized across all accounts and assets. This is the closest approximation to what would toebijten te a liquidation setting. Upon logging into the podium, customers will see that they have experienced a generalized loss percentage of 36.067%
There will be a plane 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 keuze they are working on a process where it could be exchanged for shares te iFinex Inc ter the future.
Daniel Winters, a Bitcoin-knowledgeable tax registeraccountant at Total Tax Accountants te the US, recently posted how thesis losses affect US taxpayers.
For US persons reporting the loss on their tax come back, the basic question is whether this will be a haber loss, or a theft/casualty loss.
Daniel described the two mechanisms for claiming losses, haber losses and casualty losses, each with their own rules. For most investors, hacienda losses will generally be ter their best confianza since the entire loss is the cost onderstel of the coins. It is much like those coins were sold off for $0 USD.
The good news is that caudal 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 cómputo will be carried forward into future years.
Casualty losses are only deductible above 10% of your Adjusted Gross Income (AGI) and vereiste be taken te the same year. Unluckily, this often means that petite losses are simply overlooked.