What is the difference between 1099 b form and 1099 k form for cryptocurrency transactions?

1 answers

• Bundgaard NicolaisenSep 19, 2023 · 2 years ago
  The 1099 b form and the 1099 k form are both important for reporting cryptocurrency transactions, but they have different requirements. The 1099 b form is used by brokers to report the sale of securities, including cryptocurrency. It requires detailed information about the sale, such as the date, proceeds, and cost basis. On the other hand, the 1099 k form is used by payment settlement entities to report payment transactions, including those involving cryptocurrency. It focuses on the gross amount of payments received and the number of transactions. So, if you sell cryptocurrency through a broker, you'll likely receive a 1099 b form. But if you receive payments in cryptocurrency, such as for online sales, you may receive a 1099 k form instead. It's important to understand the specific requirements for each form and ensure accurate reporting to comply with tax regulations.
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