Can you provide examples of 1099-b adjustment codes that are commonly used in the cryptocurrency industry?

1 answers

• Shea ThomsonAug 06, 2022 · 3 years ago
  Sure, I can provide you with some examples of commonly used 1099-b adjustment codes in the cryptocurrency industry: 1. Code G: This code is used to report any adjustments made for cryptocurrency staking activities. Staking involves holding and validating transactions on a proof-of-stake blockchain, and adjustments may be necessary to account for staking rewards or fees. 2. Code H: This code is used to report any adjustments made for cryptocurrency lending activities. Lending cryptocurrencies can generate interest income, and adjustments may be necessary to account for the interest earned. 3. Code I: This code is used to report any adjustments made for cryptocurrency airdrops or forks. Airdrops and forks can result in the creation of new cryptocurrencies or tokens, and adjustments may be necessary to account for the value received. These are just a few examples, and there may be other adjustment codes that are specific to certain types of cryptocurrency activities. It's important to consult with a tax professional or refer to the IRS guidelines for accurate reporting.
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