How to Report Cryptocurrency on IRS Form 8949 - CryptoTrader.Tax

[@reptilian2998]

one thing i notice they did not mention was if you have more transactions than what it fits in box make sure to fill out as many as short term or long term pages as you can.

[@TSUTENKAKU007]

Excellently explained in most direct and simple way so everyone, including myself, can understand.

[@oak415]

Are you f--king kidding me! Should be the exchanges jobs to be handling all of this. why ask for KYC then. I mean even Robinhood is able to send out tax forms at the end of the year

[@cryptodeity]

I agree…

[@nouveauart]

Facts.

[@mikegagliarducci875]

All these platforms will send you tax paperwork, take it to your accountant and save yourself from pulling out your hair trying to figure it out.

[@Shenanigans000]

Thank you!!! Agreed!

[@RavenousFallen]

CoinBase said I won't get 1099 since the profit was less than 600.

[@coevers1962]

What about fees and spreads? How are they reported in the calculation?

[@jonathanterranova448]

What if you didn't and don't know? But you still do your taxes. Fines, fee's and jail time?

[@nazmulislam4862]

DO I NEED TO ATTACH 8949 WITH ALL TRANSACTIONS OR ONLY THE CAPITAL GAIN/LOSS TOTAL PAGE THAT SHOWS THE AMOUNT NOT THE TRANSACTION DETAIL?

[@93lbBALDSPOTSonya]

Same thing that I'm wondering 🤔🤔🤔

[@icyisaac210]

what did you end up using and did it work ??

[@93lbBALDSPOTSonya]

@@icyisaac210 I had went to united way to file my taxes and the girl said no one has ever come there to file taxes on cryptocurrency ever..then a week later the tax preparer called and told me that she wasn't able to file my taxes because they don't do it there. Now, I have to go to H&R block. 😔😔😔

[@giantasparagus]

Hypothetically speaking would it work to know the exact amount you started with and when you finally decide to "cash out" and transfer money you would essentially pay capital gains on the difference?

[@rambam77]

Basically yes

[@King-pu9jt]

So what about if I haven't sold that coin that I purchased with Ethereum? I'm still holding it and will hold it for years. I understand that the Ethereum traded for another coin is a taxable event but is that all I fill out? Just the Ethereum trade for another coin? Thanks in advance

[@DashCo52]

I have the same exact question. Based on his example I bought BTC but in my case I did not sell after I traded the coin.

[@alonsob.9865]

@@DashCo52 I think you only report it if you traded that bitcoin or traded some of it or whatever the coin would be. If you traded let’s say ethereum for bitcoin, I think you don’t report it until you sell some of it off or all of it because then how would we know if it’s a short term or long term if you haven’t done anything but hold it.

[@alonsob.9865]

From my understanding you only report what you sell. So if I plan on holding a coin for years then I would report it when I sell it.

[@scottbrown-xveganxedgex2799]

Correct. Only report the ethereum. The other coin you hold has no taxable event until you sell/trade. Just keep track of what your cost basis for that coin is, so when the time comes you have that available.

[@dougs7367]

I have thousands of transactions I have to enter them all on multiple copies of that form? Why don't they just collect tax at the moment you sell your crypto so we don't have to deal with all this.

[@davidkemmerermusic3055]

You can use CryptoTrader.Tax to automatically do this for you!

[@dougs7367]

@@davidkemmerermusic3055 Any discount codes?

[@icyisaac210]

what did you end up doing and did it work ?

[@somers2020]

You can group all your trades by Asset and combine all your Sells of say BTC on one line.

[@groc4234]

Lets say i bought coin at 2 or more different price points and then decide sell or trade all of it, how does that look on form 8949?

[@ninaxoxo2555]

Did u ever figure the answer out to this?

[@DavidEVogel]

Calculate your average cost/coin: total cost/number of coins. Example: $100,000 for 2 coins is $50,000K each. Sell 1 coin for $70,000k. $70,000 minus $50,000 is $20,000. $20,000 is taxable gain.

[@iog4209]

How do I find date acquired?

[@Cryptogally]

Wait, so we have to fill out the 8949?? Why doesn't the software fill this out on Turbotax?

[@coinledger]

CryptoTrader.Tax does fill this out automatically for you. This explanation is just showcasing the behind the scenes process for how it works.

[@DashCo52]

On the 8949 is it okay to list both STOCKS and CRYPTO??

[@scottbrown-xveganxedgex2799]

Yes. Just separate into proper sections (short term or long term)

[@joseguarin115]

@@scottbrown-xveganxedgex2799 for stocks, isnt it enough to just do a 1099b? thats the one Schwab directed me to

[@uuuu260]

How would the irs know you actually held the crypto for more than a year? Do you have to submit additional paperwork like transactions on an exchange?

[@DavidEVogel]

What does your IRS form 1099B say?

[@garydelong7750]

Nice explanation, but, how do you determine cost basis if you’ve cost averaged in for several years? Thanks

[@DavidEVogel]

Calculate your average cost/coin: total cost/number of coins.

[@brianbranham327]

Nice question

[@Zanytiger6]

Easily explained thanks!

[@TheJB954]

I trade in the Forex market lets say for the year you have had over 80 trades do I have to file each loss one column at a time? Or is there a simple way of doing this.

[@NKWTI]

Go online and log into cointracker (google it) they generate the form for you and collect all of your transactions for any exchange company you add to it that you have used. For me, I only use Gemini trading, so I simply added my account (you have to add a unique token to cointracker which allows them to show you your transactions...they will give you directions, it's simple). You will be able to get the 8949 form automatically generated with your gains.

[@aarongonzalez2953]

Same

[@icyisaac210]

what did you end up doing and did it work ?

[@noobgrab7081]

Get a cpa and talk to them, they will be your assistance with the smartness of a billionaire

[@Sound_Enthusiast]

Do I need to submit IRS Form 8949 if my gain/loss total is in the negative for the taxable year?

[@coinledger]

Hi - Yes you do. And it will benefit you! By reducing your taxable income

[@thurmanhendrix]

New to crypto... How would taxes be handled if I use bitcoin directly for purchases?

[@DavidEVogel]

Each purchase is a taxable event.

[@CriticoolHit]

I need one of these specifically for mining.

[@BBlackk1010]

do we have to report airdrop or reward (for ex: when you sign up)? Do we pay taxes for these types of events?

[@coinledger]

Yes - airdrops are treated as income. We wrote more about this here: cryptotrader.tax/blog/new-irs-cryptocurrency-tax-guidance

[@rsstnnr76]

I have a question. I'm new to crypto. Let's say I use Coinbase and I buy $1k of Bitcoin. After 6 months I decide to sell it. I don't transfer it to my bank account. I sell it to my cash account in Coinbase. Am I taxed if the money is kept in Coinbase? Or am I only taxed if I withdraw funds from Coinbase to my bank account? Likewise, if I convert the $1k of Bitcoin to XRP is that taxed? Thanks.

[@PerroCumbiero]

you still taxed u basically converted your coin to another

[@robertmotz9227]

not true. It is not income until hit you bank account.@@PerroCumbiero

[@cryptofuturebch]

Question. While filing this form can you also include any fees incurred? IE to buy 100$ of Bitcoin I actually only got 96.16 worth of bitcoin because there was a 3.84 cent cost to buy it when it was at a value of 7176.37 and got .01339954 BTC

[@daniluchison]

Talk to a tax consultant. I believe fees and cost commisions can not be written off but I think you can add them as part of ORINGINAL PURCHASING COST. I'm not sure though, you should see a tax expert.

[@cryptofuturebch]

@@daniluchison it looks like coinbase includes them into the purchase so I guess the answer would be yes

[@prod.gerero]

THANKS!

[@BeHappy-hh1ty]

Robin Hood just gives you your profit.