How does TurboTax calculate the cost of reporting cryptocurrency gains and losses in 2022?

3 answers

• Teoh Zhen YingMay 13, 2021 · 4 years ago
  TurboTax calculates the cost of reporting cryptocurrency gains and losses in 2022 by using the FIFO (First-In, First-Out) method. This means that the cost basis of the first cryptocurrency you acquired is used to calculate the gains or losses when you sell or dispose of your cryptocurrency. TurboTax takes into account the date and time of each transaction to determine the order in which the cryptocurrencies were acquired. It then calculates the taxable amount by subtracting the cost basis from the sale proceeds or fair market value of the cryptocurrency at the time of disposal. This information is used to generate the necessary tax forms and reports for your cryptocurrency transactions.
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• ALI ELSAYADJun 08, 2022 · 3 years ago
  When it comes to reporting cryptocurrency gains and losses in 2022, TurboTax follows the IRS guidelines. The cost basis is determined based on the FIFO method, which means that the first cryptocurrency you acquired is considered the first one sold or disposed of. TurboTax takes into account the date and time of each transaction to accurately calculate the gains or losses. It then calculates the taxable amount by subtracting the cost basis from the sale proceeds or fair market value. TurboTax simplifies the process by automatically importing your transaction history from popular cryptocurrency exchanges, making it easier for you to report your gains and losses accurately.
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• Tejaswini SarwadeJun 12, 2024 · a year ago
  TurboTax uses the FIFO method to calculate the cost of reporting cryptocurrency gains and losses in 2022. This method assumes that the first cryptocurrency you acquired is the first one you sell or dispose of. TurboTax takes into account the date and time of each transaction to determine the order in which the cryptocurrencies were acquired. It then calculates the taxable amount by subtracting the cost basis from the sale proceeds or fair market value. TurboTax provides a user-friendly interface that guides you through the process of reporting your cryptocurrency transactions, ensuring that you comply with the IRS regulations.
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