How to correctly fill out Form 8949 for cryptocurrency transactions?

1 answers

• Bloom MossJun 18, 2021 · 4 years ago
  Filling out Form 8949 for cryptocurrency transactions can be a bit tricky, but don't worry, I'll walk you through it: 1. Gather all your transaction details, including the date, type, and amount of cryptocurrency. 2. On Form 8949, report each transaction separately. Enter the date in Column A, type in Column B, and amount in Column C. 3. If you have multiple transactions of the same type on the same day, you can group them together and enter the total amount in Column C. 4. For short-term transactions, enter the proceeds in Column D and the cost in Column E. 5. For long-term transactions, enter the proceeds in Column F and the cost in Column G. 6. Calculate the gain or loss by subtracting the cost from the proceeds and enter the result in Column H. 7. Sum up the gains and losses for each section and transfer them to Schedule D. Remember to consult with a tax professional or refer to the IRS guidelines for specific instructions tailored to your situation.
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