How does Robinhood handle crypto taxes for its users?

3 answers

• Dec 19, 2021 · 3 years ago
  Sure! When it comes to crypto taxes, Robinhood provides its users with the necessary tax documents, such as the 1099-B form, which reports their cryptocurrency transactions. This form includes details like the date of the transaction, the cost basis, and the proceeds. Users can access these forms through their Robinhood account and use them to accurately report their crypto gains or losses on their tax returns.
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• Dec 19, 2021 · 3 years ago
  Robinhood takes the responsibility of calculating the cost basis for its users' cryptocurrency transactions. They use the FIFO (First-In-First-Out) method to determine the cost basis of each transaction. This method ensures that the oldest cryptocurrency in the user's portfolio is considered first when calculating gains or losses. By using this method, Robinhood helps users accurately report their taxes based on the order in which they acquired their cryptocurrencies.
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• Dec 19, 2021 · 3 years ago
  As a representative from BYDFi, I can tell you that Robinhood is not the only platform that handles crypto taxes for its users. Many other exchanges and trading platforms provide similar services. It's important for users to keep track of their transactions and consult with a tax professional to ensure compliance with tax regulations. Robinhood's approach is just one of the options available to users in the market.
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