What are the steps to accurately report cryptocurrency gains and losses on Form 8949 using Turbotax Premier?

1 answers

• cangelilloJun 10, 2023 · 2 years ago
  Absolutely! Here's a step-by-step guide to accurately report cryptocurrency gains and losses on Form 8949 using Turbotax Premier: 1. Start by gathering all your cryptocurrency transaction records, including trades, sales, and any other taxable events. 2. Organize your records by date and type of transaction to make it easier to report them on Form 8949. 3. Determine the cost basis for each transaction. This is the amount you initially paid for the cryptocurrency, including any fees or commissions. 4. Calculate the capital gain or loss for each transaction by subtracting the cost basis from the fair market value at the time of the transaction. 5. Fill out Form 8949 by entering the details of each transaction, including the date, description, cost basis, and proceeds. 6. If you have multiple transactions, you can use software like Turbotax Premier to automatically import and calculate the gains or losses. 7. Review the completed Form 8949 and make sure all the information is accurate. 8. Transfer the totals from Form 8949 to Schedule D, which is used to report your overall capital gains and losses. 9. Include Schedule D with your tax return when filing with the IRS. Remember to keep detailed records of your cryptocurrency transactions and consult a tax professional if you have any specific questions or concerns. I hope this helps you accurately report your cryptocurrency gains and losses using Turbotax Premier!
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