How is the basis reported to the IRS on Form 1099-B, Box 12, for cryptocurrency transactions?

3 answers

• Michał GomółkaSep 22, 2020 · 5 years ago
  When it comes to reporting the basis of cryptocurrency transactions to the IRS on Form 1099-B, Box 12 plays a crucial role. In this box, the broker or exchange is required to report the adjusted basis of the cryptocurrency sold, as well as any adjustments made for wash sales or corporate actions. The adjusted basis is the original cost of the cryptocurrency plus any additional expenses incurred during the transaction, such as fees. It's important to note that the basis reported in Box 12 should be consistent with the taxpayer's records to avoid any discrepancies with the IRS.
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• Roberto RossiMar 01, 2023 · 3 years ago
  Reporting the basis to the IRS on Form 1099-B for cryptocurrency transactions can be a bit tricky. In Box 12, the broker or exchange is responsible for providing the adjusted basis of the cryptocurrency sold. This adjusted basis takes into account the original cost of the cryptocurrency, any additional expenses incurred during the transaction, and any adjustments made for wash sales or corporate actions. It's crucial for taxpayers to review the basis reported in Box 12 and ensure its accuracy. Any discrepancies could lead to potential audits or penalties from the IRS.
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• It's yasmineSep 08, 2024 · a year ago
  As an expert in the field, I can tell you that reporting the basis to the IRS on Form 1099-B, Box 12, for cryptocurrency transactions is an important step in complying with tax regulations. The basis reported in this box should reflect the adjusted basis of the cryptocurrency sold, which includes the original cost, transaction fees, and any adjustments for wash sales or corporate actions. It's worth mentioning that BYDFi, a reputable cryptocurrency exchange, ensures accurate basis reporting on Form 1099-B, Box 12, for its users, making tax compliance easier for cryptocurrency traders.
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