So, what’s an individual who has crypto locked inside Celsius to do? The brief reply is to attend and see. As soon as chapter proceedings are finalized, some or the entire funds owed by Celsius to its clients could also be paid again. However till we all know for sure how a lot, if any, can be returned to clients there is no such thing as a allowable tax loss. Your entire tax code revolves round realization occasions – the consummation of transactions which have an financial impact – which set off recognition of revenue, deductions, features and losses. On this state of affairs, there was no realization occasion but. In brief, nothing has occurred from a tax perspective.