What are the important details to consider when using Schedule D and Form 8949 for reporting cryptocurrency gains and losses?

1 answers

• Apr 30, 2022 · 3 years ago
  When using Schedule D and Form 8949 to report your cryptocurrency gains and losses, it's important to be aware of the specific guidelines provided by the IRS. The IRS treats cryptocurrency as property, so each transaction needs to be reported individually. This means you'll need to keep track of the date, amount, and fair market value of each transaction. Additionally, you'll need to calculate the cost basis, which includes the purchase price and any fees or commissions. It's also important to determine whether each transaction is a short-term or long-term gain or loss, as this will affect the tax rate. Finally, it's a good idea to consult with a tax professional or use tax software that is specifically designed for cryptocurrency reporting to ensure accuracy and compliance with IRS regulations.
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