Voyager Interest income (but of course didn't receive due to Bankruptcy)

Forum|Forum|1 year ago
May 2, 2024
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I was wondering how to report VGX that was interest income that was disposed of in June 2023 and converted to USDC due to the bankruptcy? Coin Ledger has a cost basis for them, but since I didn't purchase them would the cost basis be $0. Even though they kept 65% of everything.

Thanks

Best answer by HollyP

Yes, since your funds were liquidated by Voyager for USDC, this is typically considered a taxable capital gain/loss transaction and CoinLedger is correctly reporting the basis (1.88) at the time that you received the staking income. You can read more here.

In TurboTax, manually enter the transaction in the 1099-B section and say that you didn't receive a 1099-B.

Thanks for the additional details!

HollyP

Employee

Please clarify how was this interest income reported to you? Was this the interest earned during bankruptcy, or interest from staking, or something else? Was this interest income reported to you on 1099-MISC or another form?

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Waterman_23Author

Hi Holly,

It was reported to me in 2022 as income (staking) and was disposed of in June 2023 as a part of the Voyager Bankruptcy liquidation. An example would be I received as interest income on 1/1/2022 for + 0.61840806 VGX($1.89). It was liquidated June 2023 coinledger has the cost basis as $1.88 and proceeds as .05. I did not receive a 1099 for it. The only option was to have the data from Voyager (unable to log in to the account) uploaded to Coinledger. In the tax program under How did you receive this investment? I just put something else as there is no option for interest. I am not sure I would even classify it as interest as I did not receive most of it back. I had - 3,536.63 VGX and received $300.97 in USDC.