Hi all,
l’m trying to sell some of my SOL, but I need to capture the loss for tax write offs (my average cost on Robinhood was $50.85). How can I best sell my coins and still take advantage of the losses? I’m guessing I would convert SOL to USDC inside Phantom Wallet and then send the USDC to Robinhood on the SOL network? (they still have support for that at least, and I just tested this process with a small amount of SOL and USDC). And then I can cash out the USDC for USD within Robinhood?
Backstory: I had posted some months ago about needing to transfer my SOL from Robinhood to Phantom, and you all helped greatly with that (especially when my coins got stuck). And I’ve staked most of my coins, like 800 SOL worth so I also don’t know if I need to report the rewards when I unstake portions to sell.
I’ve recently read some posts here about best ways to sell SOL and I see a lot about some off ramp things and Coinbase or Binance.US, but I’d ideally like to keep using Robinhood since I originally bought all my SOL on there and I think doing the cost basis and tracking should be simpler there. I appreciate any help!
Firstly, I just happened to see a notification from YouTube (Paul Barron’s channel) mentioning something about Robinhood reinstating SOL and other coins. So you might be able to just transfer your SOL there soon (instead of trading it for USDC or other tokens).
Secondly, yes, you will need to report your staking rewards. There are a lot of different crypto tax apps to help you figure that out.
Thirdly, do you need some tax loss harvesting from profits elsewhere? Not sure why you’re taking the loss? If you wait long enough, you’ll be back in profit. 🤷♂️