I am almost certain that i got scammed with an un sellable token

Look https://etherscan.io/token/0xf502ed4f64367c553780c58b163fff7cb441c845

My dumbass thought this was real, i have no former background in cc and as you can imagine way too much fate in people. I should’ve known better.

Anyway, i was wondering if there’s even a slight possibility the funds could be returned somehow? I tried decompiling the smart contract but with no luck, i do not understand the contracts enough to write an function to sell or to read through it to understand.

I am almost certain nothing can be done but i am still hoping there’s something i can do

I have been a long time holder of BTC and other crypto currencies… I have only ever bought and have never sold. I now have a scenario where I need to cash out some money for my family and although I would rather not sell my BTC, (esp right now while we are having a bit of a pull back) I need to do what’s right for my family and access some of the funds in my wallet.

Can someone please explain the best way to go about cashing the crypto out to minimize the tax impacts. I understand that I have to claim my earnings and report capital gains… My main question is if I had purchased on an exchange like Coinbase repeatedly over the last decade or so, but always transferred the bitcoin to a cold wallet… If I transfer it back on the exchange now to cash out, how does it know which bitcoin was bought at what price levels so I can accurately report capital gains? I see options for FIFO, HIFO, or LIFO but like, how does Coinbase know if it’s coming from a cold wallet and is then being sold? Does it just go off of my past account transactions?

Does anyone else have advice on what the best way to do this would be?

Also should I do this right now (pre 12/31) or wait till after the new year to give myself more time to prepare my tax filing for next year.

Any insight or tips are greatly appreciated!

The latest Electric Capital report focused on the developer activity in the crypto space till the year 2024. This report is based on data extracted from millions of code contribution made to blockchain platforms and include data from contributions of several hundreds of developers. It is very focused on topics such as trends within the various diverse developer communities, exciting projects within these communities, and ecosystem expansion.

Out of all the names mentioned in this report, Polygon definitely stands out. First, let’s discuss the results obtained more thoroughly.

• Leading in Asia and South America Polygon ranks first for developer activity in Asia and is among the top three in South America. The fact that it is most active in these locations proves how it has developed relations with local developers. This makes Polygon to be ideal for developers across the globe.
• Over 1,000 New DevelopersIn this year, over one thousand new developers flocked to Polygon. This growth is in line with indications of the ecosystem’s live-lihood as well as the desire that developers have for resources that the ecosystem presents as well as the flexibility required. Polygon is very much appreciated in the community due to its easy to use infrastructure.
• Multichain Structure The report further comes out clearly to show that a third of developers act across multiple chains. Today it is possible to attend numerous platforms, and Polygon can be considered to be one of the most important ones in the given multichain environment. These developers are expected to coalesce into a more coherent community in the near future, thus providing a better basis for project execution across a variety of chains.
• Among the Top Innovators Polygon is now listed among the three leading platforms to support creative projects and is preferred by developers. Such factors as being developed for developers and having a visionary perspective explain this success.

Polygon’s influence in the developer ecosystem is poised to grow even further, promising exciting developments for both its community and the broader blockchain space.

Search:

Binance Square

CMC

ZRX

Can’t stand the Cheetoh-colored charlatan, but do NOT overlook the fact that Trump’s new “crypto czar” David Sacks is on the board and has long been a paid consultant for 0x Protocol (ZRX). He’s known as a SOL shill, but ZRX has been his pet project for a very long time.

This in part explains why, when Trump announced in May that his campaign would accept crypto donations, his list of accepted crypto looked like this:

BTC ETH SOL XRP DOGE ADA ZRX

One of these things is not like the others (start with a CoinMarketCap ranking of 171).

ZRX is one of those coins that’s been around through every Crypto Winter and boom, had its shills that eventually grew tired of shilling, but offers a DEX platform that is as reliable as it is overlooked.

I have followed this coin since 2019. I have a very small bag, at this point, but I can’t help checking in on this one a couple times a week. ZRX has always been one of those coins that goes on its own independent runs. On a day when the market is entirely flat, you look up and suddenly ZRX is up 40%. On a day with moderate losses, you look up and CRX has doubled the downturn of everything else. It has a history of going on curious tears.

I’m not savvy enough to know what exactly this crypto czar is going to do, nor what he even could do to push ZRX. But I am quite certain that this coin and this project are only going to benefit from having somebody in this newly created, totally unprecedented position who is uniquely attached to ZRX.

I will be surprised if this coin doesn’t spike by 50-60% in the next couple months. 0x Protocol suddenly has friends in high places.

Yeah this take might be a little crazy but not as crazy as Hex holders. Let me throw some points at you:

- His token that is suppose to be better than Bitcoin/Ethereum and make you money is down -99%

-His supporters "sacrificed" a billion dollars worth of crypto to him and in return after 3 years of waiting they received a Ethereum clone fiverr made chain full of rugpulls and stablecoins that can't stable. The native token is also down by a lot.

-His blows a lot of his supporters money on himself, ugly gucci suits, watches, diamonds, cars, you name it and calls it outrage marketing so it seems like this all has a purpose for his investors.

-Even in his own paid for documentary with hex holders, theirs a guy that sold his house for 240k Hex that's worth less than 4k USD now.

And his followers are happier than pigs in shit, they love him and will defend him even as he faces charges in the US and EU for scamming them.
I have watched the last 6 years of this dude scamming his own community hand over fist and delivering false promises and the delusion have never been stronger.
I am honestly quite impressed with the guy, his greatest achievement was never crypto related. He mastered how to effectively keep a cult moving.

Where can I short a Nasdaq stock using crypto as collateral? Someone on /investing mentioned Dzengi, which requires KYC. While I don’t mind that, I’d appreciate hearing about other platforms that might be available. Surprisingly, Polymarket doesn’t offer a market for this kind of trade, though it wouldn’t be ideal for me since I’m looking for 5x leverage. Ideally, I’d find a platform allowing crypto-backed shorting without too many restrictions. Expanding this further to meet subreddit rules. Hopefully, this works now. 🤞

Edit

Lemme just paste a comment here;

I'll do KYC, but only one I can find is Dzengi which looks suss.

I mean, being crypto native you gotta put your money where your mouth is. I guess depositing crypto, selling it, and using the fiat for the short is the way.

USA Only

I have seen so. many. posts. about this. I have replied to the same or tangential question over and over so I am making this post to hopefully clear things up for everyone. Moving forward, I will just be linking to this post to answer people's questions. Feel free to link for others if you wish.

For context and disclosure, my name is Justin and I am the Head CPA at crypto accounting firm "Count On Sheep".

Introduction

Revenue Procedure 2024-28 is primarily in regards to migrating to a "wallet-based cost tracking" standard.

Previously, those using the First-In-First-Out ("FIFO") cost basis accounting method were allowed to use what's called "Universal Cost Tracking". Essentially, whether you bought your crypto (let's say ETH) in Wallet 1, Exchange 4, or Wallet 27, all of your tax lots were thrown into one "universal" pool. Under FIFO, whenever you sold some of that ETH, it would pull from the oldest ETH tax lot in that pool, regardless of which wallet or exchange that ETH was sold from. This is called "Universal Cost Tracking".

Everyone is being required to switch to what's called "Wallet-Based Cost Tracking". This method does not have one giant "pool" of tax lots, but rather has an individual pool of tax lots for each and every wallet and exchange. So if you sell an asset on Wallet 1, the cost basis would have to be pulled from the Wallet 1 "pool" of tax lots.

This means that people previously using the Universal Cost Tracking method will need to migrate and switch to Wallet-Based Cost Tracking.

Who does this apply to?

This applies to anyone and everyone previously using the Universal Cost Tracking Method. If you already have used Wallet-Based Cost Tracking in the past, then stop reading, chill out and relax this holiday season as this doesn't apply to you! For almost all of my clients, we have used Wallet-Based Cost Tracking from the start as it has been required to be used for anyone using a different method other than FIFO (Specific ID/LIFO,HIFO, Optimized HIFO etc).

What is "Unused Basis"?

Unused Basis is your cost basis on assets held. In relation to Rev Proc 24-28, we are particularly focused on unused basis as of 11:59pm 12/31/2024. At that time, you will need to know (1) the type and amount of assets held in each wallet and exchange at that moment in time and (2) the unused basis on those assets. Think back to that universal "pool" I mentioned above. One spreadsheet with all tax lots of unused basis as of 11:59pm 12/31/2024.

What does "migrate to wallet-based cost tracking" mean?

That pool of unused basis at 11:59pm 12/31/2024 needs to be allocated to your wallets. Instead of one large "universal" pool, it will need to be allocated and split out to separate pools based on assets held in each wallet. Moving forward, you will track cost basis at the wallet level instead of one universal pool.

How do I migrate to wallet-based cost tracking?

You have two methods available to you.

1. Global Allocation Method
2. Specific Allocation Method

See below for more detail

Global Allocation Method

Global Allocation Method is one option for performing the migration. This method focuses on assigning a governing "rule" to your unused basis for how the allocation should be performed. In other words, a rule like "lowest cost basis to highest balance" is perfect. What does this mean? Lets look at a scenario.

You have 1 ETH in Wallet A, 5 ETH in Wallet 5, and 10 ETH in Wallet C for a total of 16 ETH. Assigning the "lowest cost basis to highest balance" global allocation rule, we would go to your spreadsheet with all your tax lots of unused basis as of 11:59pm 12/31/2024 and you would start with the lowest cost basis lots. Lot by lot, you would assign them Wallet C first, until you reached 10 ETH in that new pool, then you would take the next lowest cost basis tax lots and assign them to Wallet B until 5 ETH have been assigned to that pool. Finally, the remaining tax lots (which will be the highest cost basis) will be assigned to Wallet A.

Other examples include: "Oldest tax lots to highest balance", "Oldest tax lots to least active wallet", "Highest cost basis to lowest balance" etc.

Specific Allocation Method

This method does not focus on assigning a rule, but rather allows the taxpayer to specifically allocate each unit as they see fit. In other words, taking that spreadsheet with the pool of unused basis, a taxpayer could go line by line and assign each tax lot to the wallet or exchange they want, until they reach the proper amount of assets held in that wallet/exchange.

Do I have to do something before year-end?

Only those taking the Global Allocation route must take action before year-end. For those taking the Global Allocation route, you need to document the rule you select prior to year-end. How do you do this? Take a piece of paper, write out something along the lines of "Revenue Procedure 2024 Safe Harbor Allocation Plan". Then below that, write your rule, ie "lowest basis to highest balance wallet", then below that sign and date the paper. Take a picture of that piece of paper and email it to yourself to further substantiate the date. Keep that piece of paper for your records as well.

For those taking the Specific Allocation Method, you do not need to take specific action before year end. However, you will need to perform the allocation and migration before you make any sales, transfers, or transactions in 2025.

Will my tax software help me this?

Potentially, it depends on the software. We work with many different softwares at my firm, but primarily use Koinly as our preferred software of choice. I have personally talked with the Koinly team regarding how to make this migration as pain free for their users. From my understanding, Koinly sent out an email to all paid users who are currently using the universal method. You need to go to settings --> cost basis to affirm the migration at year and and confirm your migration rule for the global allocation method. Koinly will send out an email for you records showing the method selected (I think there might just be one right now for simplicity). I would suggest if you want to be extra safe, do the same exercise above of writing down the method shown in Koinly and taking a picture and emailing it to yourself for even further documentation, although probably not necessary.

I believe most other major softwares are doing something similar, but I have not personally talked with their teams so I cannot comment on the approach the other softwares are doing.

What can I do to make this easier?

In no way am I recommending you do these things. These are just options for those whose sole objective is to make this process as simple as possible. These are not requirements and these are not what I recommend you do, but they are options.

1. Sell all your assets before year end and buy in the new year. If you are not holding any assets as of year end, and you rebuy everything in the new year, then no migration will be neccesary you will just begin utilizing wallet-based cost tracking in the new year. This will result in realizing capital gains and losses in 2024, so beware.
2. Consolidate all your assets to one exchange or one wallet. It would still be a good idea to elect an allocation method like "lowest cost basis to highest balance" just to be safe, but the allocation itself will be very easy as it will just be 100% to the one wallet or exchange. Obviously there are risks with this.
3. Flip on Wallet-Based Cost tracking for all previous years and amend previous year returns. This is actually a method we are doing or some of our clients. Why? By using wallet based cost tracking in the past, we can utilize more favorable cost basis accounting methods such as HIFO or optimized HIFO as opposed to FIFO. Additionally, having wallet-based cost tracking on from the start will mean this whole thing does not apply. On top of that, by using the more favorable cost basis accounting methods, our clients might even get money back when they amend their previous returns. With that said, it is absolutely vital that previous returns are amended. Your filings need to match the records in the tax software you are using. If they don't, you could be in hot water with the IRS.
4. Work with a CPA. I am not plugging my business. There are plenty of CPAs out there who can help. Go checkout CryptoTaxGirl, QuickCryptoTax, Patrick Camuso, GordonLaw, or many more. Also, most softwares have a "Find a CPA" or "Find an Accountant" page. Just google "Koinly Find an Accountant" or substitute Koinly with your software of choice. You will find a list of many different accountants. A word of caution though, make sure they are qualified. Some might not be CPAs or might not even be based in the US. The easiest way to vet them is to simply ask for their CPA license number.

If FIFO Required Starting in 2025?

Potentially, but not exactly clear at the moment. The last paragraph of page 3 of Rev Proc 2024-28 suggests that moving forward unless a user notifies a broker of the specific tax lot they are disposing of PRIOR to the sale, then FIFO will be required. In other words, a tax payer would need to notify the broker of the specific tax lot they plan to dispose of, and the broker would need to be able to identify that tax lot, prior to the actual sale. If this does not happen, then FIFO will be used.

I asked Seth Wilks, Executive Director of Digital Assets at the IRS, for clarification on this. His answer was a bit vague. Ultimately, he said the goal here is to make sure that the 1099-DAs being reported to the IRS and taxpayers line up with what taxpayers are reporting on their 8949 and Schedule D. He said more guidance will be coming out in relation to this in the future, so we should stay tuned.

My understanding is that moving forward, discrepancies in the 1099-DAs and taxpayers 8949 could be an audit trigger in the future. I really hope FIFO is not mandated and this near-impossible requirement of notifying the broker BEFORE disposition of an asset is not put in place as this will greatly hinder taxpayers' ability to tax plan, especially those that have been holding for a long time.

Conclusion

Please let me know if I missed anything and I will edit! If you have questions, please ask them below. However, please read all other questions first before asking your own to ensure no duplicate questions. If you see others asking about Rev Proc 2024-28, please feel free to link this guide. Hope this helps clear things up.

Wishing you all a merry Christmas, happy Holidays, and a happy New Year.

- JustinCPA, Head CPA at Count On Sheep

Solo Ck Mining Node.

Block: 875750

Total fees: 0.07 BTC ($6,785)

Subsidy + fees: 3.195 BTC ($311,432)

Timestamp: 2024-12-21

Hi, I have paid for CoinTracker and Koinly both have my capital gains calculated around the same. I would love to hear about your experiences paying a crypto tax pro to go through all your transactions? Did it bring your capital gains down? Did they help you harvest taxes? Was there a big difference in capital gains from koinly, CoinTracker, awaken etc once they went through everything? Was it worth it for you paying a pro 10-15k when you know you will owe taxes? Did it give you a sense of security? Do you feel like you could have done it yourself if you payed for that $299 course crypto tax girl offers? Thanks in advance!