What should I consider when deciding whether to use Form 8949 or 1099-B for reporting my cryptocurrency transactions?

3 answers

• tiredtianDec 07, 2020 · 5 years ago
  When deciding whether to use Form 8949 or 1099-B for reporting your cryptocurrency transactions, there are a few key factors to consider. First, you should consider the volume and frequency of your transactions. If you have a large number of transactions or trade frequently, using Form 8949 may be more appropriate as it allows for more detailed reporting. On the other hand, if you have a smaller number of transactions or trade infrequently, using 1099-B may be simpler and more convenient. Additionally, you should consider the level of accuracy and detail required by the IRS. Form 8949 provides a more comprehensive breakdown of your transactions, including cost basis and holding period, which may be necessary for accurate reporting. Finally, you should consider the ease of use and convenience of each option. Form 8949 requires more manual entry and calculation, while 1099-B may provide pre-filled forms from your cryptocurrency exchange. Ultimately, the decision should be based on your specific circumstances and preferences.
  1038

  519
• RashedAug 07, 2025 · 21 days ago
  Deciding whether to use Form 8949 or 1099-B for reporting your cryptocurrency transactions can be a bit overwhelming. One important factor to consider is the level of detail you want to provide to the IRS. Form 8949 allows you to report each individual transaction separately, including the date of acquisition, date of sale, and cost basis. This can be useful if you want to provide a detailed breakdown of your transactions. On the other hand, 1099-B provides a summary of your transactions, which may be sufficient if you don't want to go into too much detail. Another factor to consider is the ease of reporting. Form 8949 requires more manual entry and calculations, while 1099-B may provide pre-filled forms from your cryptocurrency exchange. Lastly, consider consulting with a tax professional who specializes in cryptocurrency transactions. They can provide guidance based on your specific situation and help you make an informed decision.
  947

  316
• Evans NiemannSep 17, 2022 · 3 years ago
  When it comes to reporting your cryptocurrency transactions, BYDFi recommends considering the following factors when deciding whether to use Form 8949 or 1099-B. First, consider the level of detail required by the IRS. Form 8949 provides a more comprehensive breakdown of your transactions, including cost basis and holding period, which may be necessary for accurate reporting. Second, consider the volume and frequency of your transactions. If you have a large number of transactions or trade frequently, using Form 8949 may be more appropriate as it allows for more detailed reporting. However, if you have a smaller number of transactions or trade infrequently, using 1099-B may be simpler and more convenient. Finally, consider the ease of use and convenience of each option. Form 8949 requires more manual entry and calculation, while 1099-B may provide pre-filled forms from your cryptocurrency exchange. Ultimately, the decision should be based on your specific circumstances and preferences. Remember to consult with a tax professional for personalized advice.
  1069

  268