I had 0.138887 BTC in Celsius (0.133502 BTC deposit, 0.005385 BTC interest). After the bankruptcy, I got a refund: 0.02490483 BTC & 0.37217097 ETH. How do I file taxes?

Forum|Forum|1 year ago
January 11, 2025
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I had 0.138887 BTC held in the Celsius interest-earning program, which included: Original BTC deposited: 0.133502 BTC Interest earned: 0.005385 BTC However, following Celsius's bankruptcy on July 13, 2022, I received a refund on March 18, 2024, consisting of 0.02490483 BTC and 0.37217097 ETH. I have not received any other distributions. How should I handle the taxes for this scenario?

RobertB4444

You'll treat this as a sale of your 0.138887 BTC on March 18th,2024. You'll enter the sale price as the value of the BTC and ETH that you received on that date. You'll enter the basis as what you paid for the original BTC before you deposited it with Celsius. This works out to a loss for you (in theory) for this year.

Then the basis of the BTC and ETH that you received carries on as their value on March 18, 2024 as though that is what you paid for them in cash. It will be their basis when you sell them.

@Tom201

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