How do I account for a forced margin liquidation in crypto where all my assets were sold and my net was zero?

Forum|Forum|4 years ago
March 31, 2022
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TurboTax Premier Online

MinhT1

You will enter the liquidation as a sale of cryptocurrency, just like a normal sale.

Please read this TurboTax Help topic for instructions.

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TravelingmanAuthor

So even though it was sold in a cascade decline and my ending balance was zero crypto..I input the purchase price as the cost basis... and the proceeds as zero?

ErnieS0

No. You would report the sale price for each transaction against the purchase price. Your liquidation generated money to pay for your margin call so generally your proceeds would be what your account was worth at the time of the call (if it all happened at once).

Check your statement or spreadsheets for the sales proceeds.

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