What are the common mistakes to avoid when using 2019 form 8949 for cryptocurrency tax reporting?

3 answers

• May 02, 2022 · 3 years ago
  One common mistake to avoid when using the 2019 form 8949 for cryptocurrency tax reporting is failing to accurately report all cryptocurrency transactions. It's important to include all buy, sell, and exchange transactions, as well as any income earned from mining or staking. Failure to report all transactions can result in penalties or audits from the tax authorities. Make sure to keep detailed records of all your cryptocurrency transactions to ensure accurate reporting.
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• May 02, 2022 · 3 years ago
  Another mistake to avoid is incorrectly calculating the cost basis of your cryptocurrency holdings. The cost basis is the original value of the cryptocurrency when it was acquired. It's important to accurately calculate the cost basis to determine the capital gains or losses when you sell or exchange your cryptocurrency. Using a reputable cryptocurrency tax software or consulting with a tax professional can help ensure accurate cost basis calculations.
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• May 02, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends double-checking all the information entered on the form 8949. Simple errors, such as typos or incorrect dates, can lead to discrepancies in your tax reporting. It's important to carefully review all the information before submitting the form to avoid any potential issues. Additionally, it's a good practice to keep copies of all your tax documents and supporting records for future reference.
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