Disclaimer: This post is for informational purposes only and should not be construed as tax or investment advice. Please speak to your own tax expert, CPA or tax attorney on how you should treat taxation of digital currencies.
To get started reporting your lost and stolen coins from events such as exchange hacks, stolen wallets, or ICO scams, download a copy of the Outgoing Transactions template.
Make a copy of the Outgoing Transactions CSV Template
Fill out the template with your outgoing transaction data (All columns are required).
Coin - The ticker symbol of the coin lost
Amount of Coin - Amount that was lost
Type of Loss - At this stage put Gift for all transactions. You will change it later
Timestamp (UTC format) - The date that the coin was lost
This should be in the format of: mm/dd/yyyy hh:mm:ss
Within Google Sheets navigate to File > Download > Comma-separated values to save this template as a CSV file
Within CoinLedger, navigate to 1. Import stage and click Add Account + to open a new Other Account tab
Select Upload File and drag the CSV file you just created into the outlined box.
After importing the Outgoing Transaction file, you should see your transactions displayed as an Outgoing Gift in 1. Import stage.
Navigate to the 2. Classify stage. Select Classify More and then select the specific Other Account that contains the Outgoing Gift transactions. In this case, it was Other Account.
Initially all transactions will look grayed out. Click the padlock icon to enable editing on each transaction.
Click on the individual transaction to drill in further. Here you will see the option to select for Casualty Loss, Theft, and Investment Loss. (See more in this post)
For a full explanation of which type you should enter, please see our blog post on reporting crypto theft and casualties.
Click the Override button at the bottom and then click to save the transaction
Continue this process for each transaction that needs to be classified as Theft, Casualty Loss, or Investment loss.