In the past, BlockFi has issued 1099 forms to customers and the IRS to report taxable income.
Yes. In the United States, cryptocurrency — on BlockFi and other platforms — is subject to income and capital gains tax. This applies to any taxable income earned prior to and after the BlockFi bankruptcy.
For more information, check out our complete guide to cryptocurrency taxes.
While BlockFi no longer allows customers to make transactions, the exchange legally operated in the United States before its bankruptcy.
Remember, there is no way to legally evade your taxes in the United States. However, tools like tax-loss harvesting and cryptocurrency tax software can help you save thousands of dollars legally.
It’s too early to tell whether BlockFi customers will regain access to their holdings. It’s important to remember that claiming your losses on your taxes means relinquishing your right to re-claiming your crypto.
For more information, check out our guide to reporting BlockFi losses.