How does the IRS handle cryptocurrency transactions on Form 1099-S?

3 answers

• May 07, 2022 · 3 years ago
  When it comes to cryptocurrency transactions, the IRS treats them as property rather than currency. This means that any gains or losses from cryptocurrency transactions are subject to capital gains tax. In terms of reporting these transactions on Form 1099-S, individuals and businesses are required to report the fair market value of the cryptocurrency at the time of the transaction, as well as any gains or losses incurred. It's important to keep accurate records of all cryptocurrency transactions and consult with a tax professional to ensure compliance with IRS guidelines.
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• May 07, 2022 · 3 years ago
  Cryptocurrency transactions on Form 1099-S can be a bit confusing, but here's the gist of it: the IRS considers cryptocurrency as property, not currency. So, when you sell or exchange cryptocurrency, you may need to report it on Form 1099-S. The form requires you to report the fair market value of the cryptocurrency at the time of the transaction, as well as any gains or losses you incurred. It's important to keep track of all your cryptocurrency transactions and consult with a tax professional to make sure you're reporting everything correctly.
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• May 07, 2022 · 3 years ago
  As a third-party cryptocurrency exchange, BYDFi does not handle the reporting of cryptocurrency transactions on Form 1099-S. However, individuals and businesses who use BYDFi or any other cryptocurrency exchange are responsible for reporting their transactions to the IRS. The IRS treats cryptocurrency as property, so any gains or losses from these transactions are subject to capital gains tax. It's important to consult with a tax professional and keep accurate records of all cryptocurrency transactions to ensure compliance with IRS guidelines.
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