How does not reporting the cost basis on a 1099-B affect my cryptocurrency transactions?

3 answers

• Kasuni KuruppuarachchiMar 14, 2024 · a year ago
  Not reporting the cost basis on a 1099-B for your cryptocurrency transactions can have serious consequences. When you sell or exchange cryptocurrencies, you are required to report the cost basis, which is the original purchase price of the cryptocurrency. If you fail to report the cost basis, the IRS may consider the entire proceeds from the sale as taxable income. This means you could end up paying more in taxes than you should. It's important to accurately report your cost basis to avoid any potential penalties or audits from the IRS.
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• Cooper SchultzApr 16, 2024 · a year ago
  Failing to report the cost basis on a 1099-B for your cryptocurrency transactions can lead to tax complications. The cost basis is used to calculate the capital gains or losses from your cryptocurrency transactions. If you don't report the cost basis, you may not accurately calculate your capital gains or losses, which could result in incorrect tax filings. It's crucial to keep track of your cryptocurrency transactions and report the cost basis to ensure accurate tax reporting and compliance with IRS regulations.
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• Gimhani SridharaOct 02, 2020 · 5 years ago
  Not reporting the cost basis on a 1099-B for your cryptocurrency transactions can have negative consequences. The cost basis is an important factor in determining the capital gains or losses from your cryptocurrency investments. By not reporting the cost basis, you may not accurately calculate your gains or losses, which can lead to incorrect tax filings. It's essential to keep detailed records of your cryptocurrency transactions and report the cost basis to avoid any potential tax issues or penalties.
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