Our Tax Center provides tools to monitor and potentially reduce your tax liability as you use BlockFi throughout the year. In the Tax Center you’ll find useful summary data about total losses available to be harvested and total losses already harvested for the current fiscal year. You’ll also find similar data by asset, including whether an asset has a tax-loss harvesting opportunity or missing cost basis and the market position of each Tax Lot.
The Tax Center uses this data to identify opportunities to harvest losses for tax lots that are underwater by 20% or more and allows you to manually execute a tax-loss harvesting trade. When you execute a TLH trade, the BlockFi system executes a series of transactions by first trading your crypto into GUSD, and then trading GUSD back into the initial cryptoasset based on prevailing market prices. These two transactions will always occur consecutively.
Depending on how you funded your BlockFi account over time, you may see a Missing Data label for some assets. This indicates that some quantity of an asset is missing a cost basis (the original value or purchase price when the asset was initially acquired), and typically occurs when funding your account via a crypto transfer. To take advantage of TLH for these asset quantities, cost basis will need to be added. Learn more about adding missing cost basis.
Neither BlockFi nor any of its affiliates or representatives provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. Digital currency is not legal tender, is not backed by the government, and crypto interest accounts are not subject to FDIC or SIPC protections. Learn more at BlockFi.com.