Ripple (XRPUSD)

[GreedyAgorist]

How long before a Chapter 11 bankruptcy finalizes? With only a couple of weeks left in 2020, I have been assuming that happens next year. So no tax impact to figure out by April.

Unfortunately this will be a capital loss that greatly exceeds $3000 and will be carried forward for many years, even if we get back 50 cents on the dollar. (Twenty cents seems more likely and I am afraid it will be closer to 4.) I have been researching alternatives, but that will probably be how I have to take it. Of course, if one of the many DA’s trying to nail Trump would turn their attention to Cred and file some kind of fraud charges, then, even if they do not pan out with a conviction, the loss could probably be counted as a Ponzi scheme loss and taken like people could do in 2009, whether they had been suckered by Mr. Madoff or somebody else. Actually, I do not want to take it all in one year either; spreading it out over maybe five years would be ideal, but I doubt I have that choice.

So, the tax benefit would be that I can turn my attention back from my IRA’s to making money in a taxable account and not worry about short term versus long term gains (maybe even relax a little about wash sales), as, for the foreseeable future, my Schedule D will be putting a -3000 on line 13 of my 1040, with the rest of the red ink carrying on and on and on — into a future that will eventually be bright with XRP.

Only problem is, now the pressure is on to only have gains, never add to the losses. Might be able to pull that off if I can stay away from oil and gas investments right before some innovation like fracking undercuts the business. And avoid liars standing next to a hole in the ground (i.e., gold miners).