hey everyone Aaron here welcome to the video so we just got an announcement that the second distribution for Celsius creditors is going to come to us I'm going to go over the email we got what they posted on Twitter and then go through the actual document breaking down exactly how much will be coming back to people and those people that may not be getting a distribution as well also I'm talking with Laura from crypto tax girl because this distribution affects everybody's taxes so so make sure to stay tuned for that as well because whether you're doing your taxes with her and her firm or you are doing them by yourself on Turbo Tax or you have your own CPA it's really important to understand exactly how this affects taxes what you need to do what the distribution amount is what they based that distribution amount on what price so all of that is really critical regardless of how you are doing your crypto taxes also not Celsius related but I am putting together a patreon I'm surprised I haven't done this yet or any type of membership site but I am putting that together and it should be live when I release this video essentially walking you through everything I'm looking at for 2025 for the year after the Bitcoin having which historically has been an incredible year for Bitcoin but mostly all coins so I'll include the link to that below where you can enter your email get on my list and then you can get the patreon and join me and join the community for the rest of this year and all throughout 2025 so today on Twitter Celsius said they will soon begin a second distribution of $127 million made available from the litigation recovery account to eligible creditors classes 2578 and 9 I'll cover that in just a moment distributions will be made in Bitcoin or US dollars so no eth this time based on eligibility which I'll cover so for everyone that got an email today that said they're going to get a second distribution it is legit but at the very end of this document which I will cover it's really important to remember that there will be an increasing amount of fishing attempts now what's a fishing attempt it's people impersonating Celsius impersonating stretto impersonating venmo and coinbase saying that click here and connect your hot wallet to get your money that's not how it will work you will get your distribution exactly the same way that you got your first distribution so again your second distribution will come the same method that you got your first distribution do not click any weird buttons and any emails that most likely you will receive because unfortunately as we all know our information did get leaked so let's go ahead I'm going to go through this just the major things here 127 million is coming back and this will happen in the near term so we do not have an exact date yet what percent this is I'll cover in just a second so who's getting a second to distribution the short answer is everybody that's not in the convenience class so if your claim was above $5,000 you will be getting a second distribution same goes with if you had shares in ionic digital through Odyssey if you got those shares you will be getting a second distribution so most people will be getting Bitcoin for their distribution unless you already opted to get cash or you're in one of those situations where they tried to give you Bitcoin and eth but there's no distribution agent that worked so if you got cash you are going to be getting cash again I believe that is what they're saying but for everybody else that got distributions through PayPal venmo and you got a code or you got it through coinbase you will be getting Bitcoin here they say again that they converted all the cash to Bitcoin for people that they think will be getting Bitcoin unless you are like a corporate creditor that said I want to get cash or you fall into one of those smaller subcategories you will be getting Bitcoin so this is how much we will be getting back so the cumulative distribution so that takes into account what you had before and what we're getting now will equal approximately 60.4% of the value of your claim so here they they said that some people got a little bit higher than others during their initial distribution very very minor here some people got 57.6 5% in liquid crypto others got 57.8 7% in liquid crypto but if you got that extra .23 before you will be getting a little tiny tiny bit less in this next distribution because everybody will approximately receive that 60.4% you will be getting your second distribution through the same distribution agent used for the initial distribution to the extent possible right again like if you moved or it no longer works or you use PayPal venmo but in the last week or two they banned you from the platform yeah there will be certain people certain issues where they will have to adjust but for most people if you got it through PayPal venmo you will get it again through PayPal venmo if you got the first through coinbase you will get the second through coinbase and here it says if a creditor can no longer receive the second distribution through the same distribution agent as their prior distribution or they need to submit updated distribution info like if you have a new wire transfer details or mailing address you need to create a ticket immediately and I'll leave the link to this below and there are still quite a lot of people that have not received their initial distribution like their first distribution so if you still haven't received your first distribution the debtors will continue to attempt to make an initial distribution to such creditor in addition to the second distribution so if you're having issues still with your first distribution which a lot of you guys are a lot of you guys still are I recommend if you have not already create a new ticket if it were me I would create a ticket every week at this point and give them all the information they're asking for and I hope it goes through which it will eventually but I can imagine how frustrating that is to not have gotten your first and now we're talking about the second and worst case scenario is you will get your second distribution in cash if they can't figure out how to give you your first so that applies to a small amount of you but it's important to know that they have not forgot about that so if you got your first distribution through PayPal or venmo you will receive an email communication from the DTs with a code for collecting their second distribution through a quote creditor claim form so my guess is you will just input that code just like you did the first time and then you will get your second distribution in PayPal or venmo so it should be very very similar if you received your first distribution in coinbase or through coinbase you'll get an email from the debtors with an update on whether a distribution was made successfully and next steps to take if it was not delivered successfully so same as before it looks like it's exactly the same method as they used for the first distributions for those that had a corporate account you'll get either cash or crypto depending on what you did in the election form so that applies to I think a thousand plus of you not a ton of people but that will apply to you if you had a corporate account but again if you had a convenience class claim even if you are a corporate creditor you will not receive the second distribution if you signed up through a third party or utilized iCloud private relay to log in to the Celsius app and you have not received emails or other Communications from the debtors their account may be missing necessary info so you'll definitely want to submit a ticket if that applies to you now I forgot to mention right here so the Bitcoin price they are pricing in your distribution at is at a bitcoin price of 95,3 23 cents now and I talk to Laura in just a moment so do not leave the video because the tax stuff is really really important we will go over what this means what this means to you to your CPA and all that stuff but this price $958 3623 cents does matter because that is the price that they used to distribute this additional percentage and those dealing with clawbacks also known as withdrawal preference exposure they will not get a second into distribution until that has been settled through whatever means so how much will you be getting back it's going to be around 2 and 1/2% of your claim the initial distribution was 57.9% around and you'll be getting an additional 2 and 1.2% so it's not going to be a huge amount right now they are Distributing $127 million and the last report they had $247 million in their account so they are holding back almost 50% of what they have because they are going to use that money obviously they have to keep paying their lawyers and keep paying people but they also want to have enough cash so if it takes a lot of money to pursue FTX or to pursue tether for Two Plus billion dollars they don't want to run out of cash and then literally not be able to do their job successfully so that is why they are withholding about 50% of their money right now if they were to distribute everything they would literally have to stop all the litigations they're doing against individuals like insiders of Celsius like mashinsky and the other Executives everything going on with three arrows Capital with FTX with tether and many many other litigations so I'm not surprised they're withholding quite a lot of money I think with holding $120 million back is kind of a lot of money but eventually whatever is left will come back to us so that's where we get that number and again it'll be about 2 and a half% of your claim so now let's go ahead and talk with Laura from Crypt tax girl she's going to go over everything regarding this distribution what it means for your taxes whether you're working with her and her team which I did this year with my taxes or you're using your own CPA or you're using another tax preparation software what she has to say is very important for you to understand how to enter this information in whatever you're using or what to give your CPA so Laura and her team are insanely busy from Celsius creditors already a lot of you guys have already worked with her for this year and they are almost completely booked out which is crazy for next year's tax season so if you want to work with her and you know you already want to work with her for next year you can go to the link in the description and you can immediately become a paid client if you want it done right and you don't want to have to do it yourself which is what I decided to do I think it's well worth it because this stuff is way over my pay grade is confusing to me I'm not a CPA I'm not an accountant I was not an economics major I was actually a music major in college so I Outsource this stuff to people that actually know what they're doing well welcome Laura to the video I think everyone watching has enjoyed our previous chats and it's helped a lot of people uh figure out taxes when it comes to all this Celsius craziness that we've gone through so why don't you just kick it off with what's on your mind regarding everything that's happened in the past what's different now and then leading into into this second distribution and how that affects people's taxes yeah for sure so where are we at so right now people are got the email that they're going to get a second distribution so this is something new you know to discuss and what does that mean for you but I guess just as a quick like reflection on what we've talked about so far um in the past if you've seen any of the videos that you and I have done together we've talked about mostly like the Ponzi versus Capital loss so there's two different losses but these both applied to the first distribution and what does this mean for you but um just as a summary of that there was both this Ponzi and this Capital loss but the Ponzi loss could only be taken on your 2023 tax return and it had to have been filed by October 15th so if um you were like thinking you maybe wanted to do the Ponzi loss just to clarify you cannot do the Ponzi loss anymore the deadline has passed for that it's fine you'll still be able to take the capital loss and in the end the capital loss versus the Ponzi it's the same amount of loss the difference is just what year you're recognizing the loss in so in the end it'll all be the same it's not like because you miss this Ponzi loss you're out of luck you'll still be able to take your losses they're just going to be deferred to different years so the Ponzi loss was fully taken in 20123 the capital losses will be taken starting in 2024 and then also 25 maybe 26 it'll just keep going until kind of all is said and done there's no more distributions but for anyone that's doing the capital loss route the first year it'll impact you is 2024 so like as you're filing your taxes this April finally now like you're going to start reporting Celsius losses maybe potentially gains but like you'll have tax implications regarding the um Celsius distributions now like in April when you file your return got it whereas most people unless they worked with you or another competent CPA they really didn't mention or they didn't really include self I bankruptcy stuff on their filings for what they did in this year for most people yeah most people unless you did Ponzi I mean some people like incorrectly took the full amount maybe in 22 or 23 they're like like a lot of people I saw in 2022 when you know Celsius declared bankruptcy they were like oh I'm just going to take the whole thing as a loss so that was obviously wrong now we've realized because you're getting some stuff back so in 2023 some people I saw incorrectly as well they would you know maybe take the portion that they got back and net that out from their total loss but everything else they wrote off in 2023 so that's not right because it wasn't considered a total loss yet in 20123 there's still potential future distributions you know you got the distribution in 2024 now we're going to potentially you know you're going to get a second distribution so you shouldn't write off the full amount yet because it hasn't been considered a total loss so if you have like already reported a total loss on your tax return probably you're going to want to amend that but yeah I mean this past year we helped I think like 750 50 people with their Celsius calculations like actually doing the calculations and then on top of that like did consultations for so many more on top of that like probably over a thousand even though we worked with so many clients only like a maybe 15 20% of them ended up doing the Ponzi loss because again that one is more risky so even though we've done a lot of the calculations in the past they're really not going to start putting them on their tax return till now so if you feel like you're behind or you didn't get on our list last year that's totally fine because you're actually kind of still ahead of the game like we haven't even opened the 2024 tax filing season yet you still have like from now until October 15th of next year to get your 2024 return filed and get all this celsia stuff calculated so you still have lots of time good to know and yeah we'll talk more about working with you a little bit later in the video and how that works and your insane busy schedule but um let's jump into right now people got an email saying they're going to get two and a halfish per back of their clim which I think most people are rolling their eyes and upset about that but that's not entirely the point of our chat um it is unfortunate though but um anyway here we are so yeah let's talk about what that means I think a lot of people especially if they're doing their own taxes and they're not working with you this is all very confusing most people I believe are going to be taking losses on this so I think making sure you write off or or get the benefits of these losses as fully as you can is really really really important where would you like to take it or what would you like to jump into yeah I think let's just first talk about like what the second distribution is I know you already covered it but so to summarize the first distribution you received I think I sent you some slides maybe pull those up and we can look at them for reference okay so the first distribution you receive Bitcoin eth and shares and I have there the percentages of what you receive so you know about 30% of both Bitcoin and E and then like 15% of the shares and the effective price which was set as of January of 202 four that's what Bitcoin and eth was worth at that time and so that was a lot higher than the petition price the petition price was set at the time that Celsius declared bankruptcy so that was like you can see up there at the top about $20,000 for Bitcoin and about $1,000 per e and so that was almost double that and then now we're at a new effective price that they just set for the second distribution and that's like double the last one so it just keeps exponentially growing um maybe this means next time they do a distribution that Bitcoin will be you know what 200,000 per Bitcoin so I mean it's great for the market are are crypto is going up if you have crypto but if it was all stuck in Celsius you don't have any other crypto like this is bad news for you because the amount you keep getting back is smaller and smaller and smaller so this is what the second distribution looks like you're getting the 2.53% it's only Bitcoin this time they didn't mention anything about eth or shares um I guess if you're like outside the US or you had a business or you aren't able to use coinbase then you would get it in usdc but the majority of people are going to get it in Bitcoin um so that's what we're going to be talking about today and basically how it works is whatever your claim was they're going to take that dollar amount and the claim is determined based on the petition prices so whatever you were holding in Celsius at the time when they shut down and then times it by these petition prices that's your claim I think a lot of people understand that you know so far and then they're going to take that amount and times it by 2.53% that's how much like USD they ow you in Bitcoin and so then they're going to convert that to bitcoin using this new effective price of 95,000 and so I mean it's great to get a second distribution but in reality like most people are getting like you know a thousand or so dollars like it's not going to be significant but I think it's important to know the tax implications of how this will impact your 2025 tax return most likely assuming this is going to come in 2025 um but if this does come in 2024 you know it'll sneak onto the 2024 return as well and you know we can talk about that but I just wanted to walk through a few different examples of people with high cost bases low cost bases holding Bitcoin not holding Bitcoin holding alts holding like stable coins and just so that you know everyone's Situation's different but hopefully you'll find like the different scenario that aligns most with you so that you can kind of expect the general fact pattern of how it's going to like impact your tax return so this is person a this is kind of like the same format I've done in the past but instead of talking through the Ponzi versus Capital we're going to just talk talk through like what the loss is going to be and how it's going to be distributed throughout the various years so in this case this person only has Bitcoin and eth in 20124 they received 68 Bitcoin 10.2 eth and then 722 shares and then now in the second distribution they're receiving 0.256 so a really small amount of Bitcoin relative to the three Bitcoin they were holding they still haven't even recovered one whole Bitcoin so it's not that impressive but this is what they can expect to receive based on that that new percentage amount and then as far as taxes go I kind of put some hypotheticals in here so if that Bitcoin had a high basis so I put in the basis that was double um what the petition price was so the petition price was about 20,000 so I put in 40 there and then the petition price for eth was about a th000 so I put in a $2,000 cost basis per eth so if you had a high cost basis relative to the petition price like double that then you would have a loss because you know obviously you're getting back less than what you were holding so in 2024 you'd have a capital loss of 13,000 and that actually is mostly from a portion of your Bitcoin and a portion of your eth being liquidated for the shares because the way that I do the calculation is that the amount of Bitcoin and eth that you get back I'm just treating those as withdrawals of whatever you were holding so that Bitcoin and eth is actually going to keep your original cost basis and holding period um also sorry this is like so many tax and accounting words so hopefully you guys are still with me um but all you need to know is like really that loss is generated from the force sale of part of your Bitcoin and eth for the shares so that's where that comes from 2025 you're only getting Bitcoin so there's no like for sale of anything for it you could potentially say like oh you should liquidate a portion of the eth prata to your full claim and then bring that back as Bitcoin but because you still had Bitcoin in your claim left over I'm just going to treat that as a withdrawal of your Bitcoin and keep the original cost basis on the Bitcoin as well so it's actually not going to be a taxable event again when you're trying to figure out what situ situation applies to you if the amount of Bitcoin specifically that you were holding in Celsius is higher than the amount of Bitcoin you've withdrawn so far so in this case this person had three Bitcoin they've only withdrawn 6 so far and then now they're getting like 02 so they still have like you know they're down on their Bitcoin then any second distribution you receive actually isn't going to result in any gain or loss it's a non- taxable event it's just like a withdrawal from Celsius is how I treat it and then you'll have no gain or loss to report on it in 2025 assuming that comes in 2025 but um people are only receiving about like 75% of their claim back so far so they still have about 25% left that they haven't recovered yet so in this case this person would have um 102,000 of bases left in their claim you know based on on these calculations the way that I've done them where I treat them as withdrawals so if let's say next year Celsius is like you know what we're done we're not doing any more distributions this is the end then next year you would be able to take $102,000 loss Capital loss on your tax return if they keep giving these tiny slivers of like 2% per year and this keeps going on for like another 10 years that 100 2,000 is just going to kind of be suspended until this is finally done kind of sucks but that's that's what you can anticipate as far as when you can write off that final 100,000 yeah they need to officially announce that we are done with all distributions in order for you to write off or to complete this chapter essentially yeah this one's like so different from the blockfi one for example that we've talked about before it's like the blockfi they're giving you back 100% of your claim and cash and yes it was at like a very low price but it's like it's done like you're not going to get anything else so you can take the full loss with the Distribution on blockfi Celsius because it keeps trickling out forever that loss is just suspended because yeah you're not able to take it until it's determined that like you never are going to receive this anymore and there's no chance of recovery but as of right now there're still is some chance of recovery right and FTX we haven't made an FTX tax video but that'll be similar to Celsius because they're in so many litigations unless you're in the convenience class for FTX it could take years before they decide that like they're done yeah that one's supposed to be again I think it's in USD as well but so that one will have different tax implications as well but I guess we'll see how it ends up shaking out yeah we'll see all right next slide this is the one that I tweeted about today if you saw it so in this example someone has Bitcoin Ethan salana so you can see the first distribution there that's what they would have got last year and then the second distribution 04 Bitcoin so again not anything too impressive yeah it sucks because um I know I keep interjecting here I think a lot of people a lot of people asked me okay the price of Bitcoin has gone up so much since our first distribution should that increase our distribution and the problem from my understanding is a lot of this money coming back into the litigation estate I forgot the exact term for it the bank account that they're being were being paid out of it's coming back in US Dollars oh yeah so a lot of it is um selling altcoins selling illiquid assets and a lot of it came back through settlements for people that had withdrawal preference exposure or clawbacks and that was all US dollar back in USD yeah we haven't recovered Bitcoin or altcoins and kept them as altcoins if anything they wanted to sell it for dollars when they got it right they're trying to like decrease their like downward risk exposure but they like lost all the upward you know yeah blocki did the same thing they sold everything when they you know right when they went bankrupt they sold all their crypto so and then they waited till I hit the top and then they're like this is our new effective Price Right like that's what they did last year was like okay you know 10,000 oh it's 40 okay this is our effective price and then they're like oh you know hasn't done much okay it's almost at 100 yeah I think it's time for a second distribution so right right it's is suspicious is all I gotta say yeah yeah there's a lot of suspicious stuff going on okay uh next okay so in this situation I did the same thing where I took the cost basis of each coin and just doubled the petition price so this is like considered a high cost basis person so they had $287,000 of cost basis but only $151,000 in their claim so a lot higher cost basis relative to claim so for them they would recognize a $22,000 Capital loss in 2024 um and that would be liquidation of salana Bitcoin and eth for the stock as well and then 2025 because they still have Bitcoin left in their claim that will be treated as a withdrawal very similar to this person a so no gain or loss there and then they have $164,000 of basis left in their claim if you're a high cost based this person that was also holding like a large amount of Bitcoin then this this would like resonate with you so you'll definitely have something to report on your 2024 return you'll have a loss there for sure um but 2025 there's like nothing so far you know specifically to Celsius that you would need to report okay so this is person C I did the exact same situation so the 620 100 so this one's just basically a duplicate of person B but the thing I changed is if you go to the next slide um this is considered a lowc cost basis person so you can see here I took the petition price and like did half of that so instead of a $20,000 cost bases I did $10,000 here and then half of the eth petition price and half of the so petition price so in this case this person has a claim of 151,000 but they really only spent like $71,000 on this crypto originally and so even though it obviously went up you're only able to take losses up to the amount of your cost BAS which you know definitely kind of sucks but how this would shake out for them is because they're liquidating a portion of their salana Ethan Bitcoin for the shares in 2024 it actually is resulting in a capital gain because they're like being forced to liquidate assets at a price higher than what they originally had bought it for and so they actually have a gain even though you're like I've lost so much you actually do have a gain in 2024 2025 will be treated as a withdrawal so no gain loss and then I actually was you know going back and forth with someone today on Twitter about this they're like if I have a low cost basis you know I was told I need to report a game this year am I ever going to be able to report a loss and the answer is like yes eventually if you never end up receiving the rest of your claim in this case this person would have a $440,000 basis left so again if next year this was all wrapped up and done they finally would be able to take a loss on this and they'd be able to take $40,000 and before we go to the next thing something coming up for me which I'm sure other people are thinking abouts is selling like forced selling of your crypto for these ionic shares and I mean that is still a big unknown regarding what'll happen with that and when we have Clarity when they could be traded when they could be when there's liquidity to sell when there's movement on that you'll come back on the station and explain what that means because like that right I mean that's a whole another set of variables when that becomes something that people can sell right is that because nobody would have ever sold their Bitcoin or E their Sal or anything to buy these shares like nobody was trying to do that you were forced to do it and so that you know it's not great but it's what the situation is and so then now you know what is going to happen if these end up just like also turning into nothing these end up being worthless you will eventually be able to take a loss on those equal to what you know you recognize as capital gain for so if they end up turning into nothing you still can take a loss on them it' be called a worthless investment loss and you'll eventually be able to take it but again it's so up in the air so who knows yeah I just wanted to bring that up because I'm sure a lot of people are like wait wait what is nobody's happy about that nobody's happy including me okay this one I included because a lot of people had questions about this last time was like What if you had staes like how does this look so this person had 250,000 of stable coin that's all they had then in that case they get the Bitcoin the eth and the shares and these are all forc sales forced sales of their usdc to buy the Bitcoin to buy the Ethan to buy the shares but because it's a stable coin the petition price the effective price today's price it's all $1 and so it is a taxable event but it doesn't create any gain or loss it just like reduces the amount of usdc in your claim so okay so it's just like it's as if they just bought crypto they just they just bought Bitcoin Ethan shares there's a certain amount that will establish as your cost basis for each of those so it still would be good to do the calculations so know like what is my cost basis in that Bitcoin what is my cost basis in the eth and what is my cost basis in the share so that if you go to sell them and like how does that work and what's my holding period what day did that start on so it's still good to do the calculation but you don't there's not like a huge rush to do it because it it actually doesn't really impact your 2024 return and then here's the second distribution but if you go to the next slide you can see like there's no gain there's no loss in 24 there's no gain or loss in 25 these are all just like four sales that create taxable events but have no gain or loss and then in this case they have um 54,923 left in their claim that they could eventually write off if they don't get anything back but if they keep receiving distributions they'll just keep liquidating those it won't be any gain or loss until so if in the end they ended up getting 100% like paid back if Celsius ends up paying back 100% then all of this usdc eventually will be sold for the Bitcoin and the eth that or whatever else they end up giving back so any anyways it's just sitting there waiting to see what ends up happening with the rest of the claims okay and this is the last one so this is a person you know this one's a little more unique but if you did not have Bitcoin specifically or in this person I did also no eth but specifically no Bitcoin this is where you would want to look so you know cardono link Soul here's the distributions you would get you know both years you can just kind of look at that nobody's getting more than like 0.1 Bitcoin in any of these situations so um there's that one okay then go to the next slide so it's similar to the stable coin in that you're selling the cardano the link and the Solana all for the new coins that you received in the distribution so the eth Bitcoin the shares and then this year just the Bitcoin so all of them are being liquidated but um because they're not stable you know they have a high basis relative to the petition price and then they also have a price relative to the new effective price when these get have the force liquidation there is going to be a gain or loss so 2024 when you receiv received like almost like 50% of your claim in the crypto and then a portion of it in the shares you're going to recognize a capital loss so in this case they had 258,000 as a capital loss so that one's like pretty significant so you recognize more loss in this case if you have no Bitcoin or eth because nothing's being returned to you it's all being liquidated and then in 2025 as well everyone every other example we've done there's like no gain or loss no gain or loss no gain or loss but in this case there is a loss because they had no Bitcoin that you could withdraw from and create a non- taxable event so we had to again sell pra a portion of the cardano link and Solana for the new Bitcoin that you just received and that's going to create you know a $5,500 loss on top of that and then you have all this basis left to eventually be you know sold liquidated whatever for as a loss maybe later so I probably should have done like one more example where let's say we had like you know just to be extreme like one Bitcoin and 100 eth so you were holding Bitcoin but you had more eth like relative to your Bitcoin and so you would have received back more than one Bitcoin already um just the way that the distribution lined up with the first distribution so even though you were originally holding Bitcoin now the amount that you received back is in excess of that one Bitcoin so you would also still have a gain or loss in 2025 for the liquidation of the eth for the Bitcoin but hopefully you guys are still following I tried to put as many examples in there there's so many ones that I could do though and everyone's going to have their own unique situation so if you're not sure like which one you're in or you just want like a more custom calculation or you haven't done 2024 yet that's like The Big Year reach out we can help you with any of that yeah just like the other videos we've done part of me gets it and part of my eyes roll in the back of my head and I think that most people sorry no that's partly why I want you to come on because unless you are an accountant yourself I think that applies to 99.9% of people watching or trying to do their taxes on their own so yeah like I know watching a video about like taxes and numbers is not a very exciting thing um so I'm sure not everyone's followed all these numbers but just like hopefully you can look at them and just get high level like okay what can I anticipate and then the details will figure out but this will kind of just like point you in the direction of what you can anticipate yeah the details you obviously figure out really really well I think the big thing right like if if if you know you have losses here it's like figuring out exactly what they are making sure it's done correctly and making sure that you get to write off and you get to you know use all the losses for all the other income I'm probably saying this wrong I mean I really I'm not a tax person but you know what I mean like you just want to like make sure like the Celsius disaster is as like you know as good as it could be I guess yeah I mean especially for 2024 like I mean the market has been crazy the last you know month or so and so if you're taking gains right now especially like 202 for is the year where you recognize your Celsius Capital loss like the big one like this 2025 second distribution is like so small but the 2024 one is like the big number like in some of those examples we were looking at like there was like over a $200,000 loss in 2024 and so um if this was like a down Market that would be like pretty you know rough news because you can only take $3,000 of capital losses per year so if you have a $200,000 loss but you can only take 3,000 of loss per year it just feels like I'm never going to you know recover anything from the Celsius this loss is just going to carry on over forever and like I'm never going to have gains but let's say you got your distribution back and you like held on to it till now and then maybe decided to sell it it's like you know doubled or tripled in value depending what coin you had so you now have gains and you have this like built-in loss so if you have the 200,000 like that sucks like you lost $200,000 on Celsius like that's never going to be good news but like the light silver lining is well your next $200,000 of capital gains are tax-free so the timing does luckily line up sometimes it doesn't with things like this but in this case you did have the big loss in 2024 and it's also like a high market right now so if like you want to be taking any gains you have this loss even if you don't even want to take the gains till next year that's fine you would only take $3,000 of a loss this year and then next year you have $97,000 just bu bu in so again your next $197,000 of gains are like completely taxfree so slight slight Silver Lining to like a really rough situation but if you haven't taken your losses or maybe you've been intimidated about calculating or just like I talk to a lot of people they're like I'm kind of like scarred by the Celsius situation like I don't want to like open that Vault and like dive into the numbers and like that's very stressful like maybe now is a good time where it's like okay at least you know like your crypto has like somewhat recovered if you if you're still holding some and the Market's looking better maybe you have a little more disposable income like maybe it's time to just figure this out so that you can Finly take that loss on your tax turn and get like a slight amount of indication in it yeah you you brought up so many good points I mean the first right like if you wanted to sell your crypto now and it's appreciated a lot even the crypto you got back from Celsius because yeah I mean a lot of people that crypto has gone up I mean Bitcoin has overd doubled right you know in terms of when that was calculated and also what you said too about Celsius being just so traumatic for people you said you had like 700 plus Celsius clients this year I mean I'm sure you are like full-time CPA part-time trauma counselor nerv best yeah I know I feel so bad I like like know me too I hate I mean and you you've heard all the stories too but it's just like oh it's like some people it's just like your heart like everything they had was in celsus and so everything everything everything so hard to hear like that story over and over yeah absolutely and having a team having you and your team go through all the numbers I think just having having competent people like yourself and your team holding someone's hand that have gone through a very traumatic experience regarding like yes this is what happened these are the facts but here is what we can do to make this slightly better rather than like oh my gosh I'm doing my taxes by myself I'm the first one that has to see this like this is so traumatic and I'm by myself in my room alone and H like I don't know I mean I know everyone's different but but for myself I mean that I feel like maybe just have having professionals where you can be like well okay so this is what happened but like how can we make the best of this and I don't know I can see that being very helpful for a lot of people just to yeah just like a third party like okay let's like chat through the actual facts and like what can we do like this was the situation what can we do move some of that thinking some of that stuff just as a professional here rather than you being doing yourself so yeah yeah and everyone has to like you know prioritize different things like obviously you know it's not cheap to work with an accounting either um but when there's especially huge numbers involved like the accounting fees are totally justified by the Savings in my opinion so yes you're insanely busy you were talking to me before I started recording this just about how how booked you are even for next year from people that got on your weit list you know paid a retainer essentially became a paid client this year I mean can you explain like that whole scenario like if people are watching this and they're like all right I haven't I haven't decided to work with you guys but I'm realizing that it would probably be a good idea we have really specialized in helping people with Celsius this year and so as I mentioned before this year a lot of the clients that we worked with were people that were like on the teetering point of like they might have been a good pzi client they might have been a good Capital client but we had to kind of look at the full picture to really decide and help them navigate like which one they would be so those are the clients we prioritized taking this year were people that were like maybe going to take the Ponzi loss cuz that had to be done last year before October 15th but now we had a ton of people that reached out to us and they're like I already know I'm doing Capital like I'm not even interested in Ponzi based on like my cost basis based on my risk level based on you know my other gains that I might have had or whatever they're like I know I'm doing Capital because they didn't have to do anything on their 23 return for that we just automatically put them on the list for next year so we have like quite a long waiting list already to work with us this next year so we're we've actually started now as soon as October 15 ended we started working through that list um and we're working through it now but we also have all our previous clients that are now going to come back for the next tax year that we have to obviously um provide you know their tax returns as well so as much as I would love to help like every single person under the sun we also are limited by you know our Manpower and I could again turn around and hire like 10 more people but I do not want to sacrifice quality like this is pretty complicated stuff and I'm only like willing to grow as quickly as I can like keep that quality high and like have really good people so all that to say we are taking on new clients if you get in now before the end of the year like if you want to start like tomorrow we actually can fit in like some clients from now till like the end of the year end of December um once January hits that's when like the new tax season hits so we're going to be quite busy with our like previous client load and then everyone on the waiting list and so if you want to work with us um we're going to have to add you to a waiting list kind of similar to what happened last year we'll put you on a list as of right now there's no guarantees that you'll be able to file by April 15th but for most people that actually won't matter because if you were like in those previous examples you had a high cost basis you're actually going to like on your 2024 return it's going to result in a loss so you're not going to have all this extra income that you suddenly need to report and like pay estimated taxes on you're going to have a loss and so whether you file in April or October won't really matter um of course there's other things to consider though if you have other income that hasn't been withheld on like let's say you just recognized a million dollars in gains or something like that um selling Bitcoin that obviously we would want to try and get it in before April 15 but or at least have a calculation by then so everyone's situation is so different but we do have some like wiggle room for those like you know one-off clients so if you want to get it done before April 15 reach out to me let me know or go to Crypt girl.com Celsius we have something called a priority CL Cent which is where we can just get started right away you move to the front of the waiting list and that is at you know a higher rate for those priority clients if you want to pay the normal $500 an hour um rate and you're not in a huge rush you can get on our waiting list again go to the Crypt tax girl.com Celsius that's option number two on there to get added to the waiting list and if you're considering that I highly recommend doing it before the end of the year because once January 1 hits we're actually going to raise our rates but I'm still honoring that $500 an hour previous rate that we had last year because that's what we've been telling clients all throughout this year so if you get on our waiting list before January 1st we'll keep you at the $500 an hour wait rate after January 1st we're still going to have to add you to the waiting list but it'll be at $600 an hour so again I'm so sorry like I sometimes I see your complaints on like Reddit and Erin's comments that you think my rates are insane I'm sorry I wish I could lower them but the reality is we just we can only serve so many clients so and then finally if you're not like sure whether you are a good candidate to work with us or you just like have a few questions but you don't want to commit to like the full process you can also schedule a call same on that Blog the cryptxxx girl.com call it'll take you right to a spot where you can set up a call or just email me hello crypt.of to reach out to me directly happy to answer any of your questions and help you navigate this um because I know there's just like so many moving pieces and as usual always mention that you came from Aaron I'll give you $100 off your bill very cool well thank you again for coming on the show and easing people's concerns about taxes um death and taxes right only two things that are for sure unless maybe Donald Trump simplifies the tax code but that's a different convo so I'm not getting into that let's not get into that all right well thank you for coming on and I'll include all the links to everything you talked about below and yeah thanks again thank you for having me glad we could you know touch base every few months about this stuff so that is it for the video guys hope you enjoyed it again if you know you want to work with her you can use her link below to become a paid client immediately because she is booking out a lot and also if you want to join my email list and my patreon and join me for 2025 which I really expect to be an amazing year for crypto you can do so using the link below as well thanks for watching guys till next time talk with you soon and bye for now