FAQ:

So why not just burn the assets?

Burning assets is in some jurisdictions not considered as a realising taxable event and therefore will not give you the accumulated tax losses that you want to deduct against your profits.

How is this tool different then for example https://nftlossharvestooor.com?

This is actually a fork of the NFT Loss HARVESTOOOR. We added functionality around other tokens that are not ERC721, increased features around privacy and removed a function that allows you to buy back your assets at any time for the same price as this could be seen as a fake transaction from the tax office.

Can I get my assets back?

No. This is a real transaction in which you are selling your assets to the hoarder, the hoarder does not give back anything he collected.

How are the taxes calculated?

This depends highly on your personal tax residency and the jurisdiction you are in. Also on your personal situation for example if the assets are private assets or part of a legal entity eg a business. Here a simplified example for Germany. You privately buy tokens in ETH for the value of 1000€ (Make sure to tax the ETH correct at this point). After finishing the transaction you find out that you used a fake-pool and ended up with a token that has the same symbol as the token you wanted but is worthless. Now you are stuck with a token that you can not sell or use and that you didn’t want. If you manage to sell your tokens within a year to someone for example Hoarder for 0,0001 € then you will accumulate a loss of 1000€ that you can deduct against other profits made in crypto trading in this year and save up to 450€ in taxes.

Should I send all my airdrops and unwanted coins to this contract?

This is not recommended, some tokens have no „send“ functionality or have a malicious „send“ functionality, for those you might end up causing more problems. Selling your assets to the hoarder is only a good idea if you can’t sell them on any other marketplace, if you are within a tax deductible time frame and if you have actually paid for the asset in the beginning.

Is this legal?

This question depends on your jurisdiction. In general it is highly recommended to disclose things like using this tool to the tax office. The developers don’t take any responsibility for misusing this tool.

Is this a real transaction?

Yes, this is a transaction that takes place on the blockchain. Your assets are sold to the Hoarder and you can not get them back.

All you do is loose money. How is this funded?

The hoarder is pre-funded by the developing team. We did brainstorm different ideas on how to fund the contract in interesting ways, the biggest problem was that the contract could end up with assets himself and therefore be considered a business which would lead to regulatory complexity. If the contract is empty at some point it has done an amazing job. Everybody can fund the contract again, keep in mind that his might limit your ability to use it, the tax office might consider giving someone money to buy something from you is a fake transaction and therefore not treated the same way. If the project ends up to be so successful that it will need to be refunded this might be something to use RetroPGF.

Disclaimer:

This tool was built during ETHBerlin04. 24.05.2024 - 26.05.2024 use at your own risk. No safety audits have been made. Only use for assets that are absolutely worthless, there is no way to get your coins back. Tax law varies by country. Please check if deducting losses against profits is possible in your jurisdiction. This method might not be legal in your country, please consult a tax lawyer to verify if this can be added to your taxes. Using this tool should always be disclosed to the tax office, in some legislation using a tool like this could be considered as an abusive tax structure.