How does TurboTax handle cryptocurrency capital gains and losses?

3 answers

• Nov 23, 2021 · 3 years ago
  TurboTax offers a dedicated section for reporting cryptocurrency capital gains and losses. It provides a step-by-step process to guide users through the reporting process. You can import your cryptocurrency transactions from popular exchanges or manually enter them. TurboTax also supports various types of cryptocurrency transactions, including buying, selling, mining, and receiving as income. It automatically calculates your gains or losses based on the cost basis and fair market value of your cryptocurrencies.
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• Nov 23, 2021 · 3 years ago
  When it comes to calculating capital gains and losses, TurboTax uses the FIFO (First-In, First-Out) method by default. However, you can choose other methods like LIFO (Last-In, First-Out) or specific identification if applicable. TurboTax also takes into account any wash sales, which occur when you sell a cryptocurrency at a loss and repurchase it within a certain timeframe. It helps you accurately report your capital gains and losses while minimizing your tax liability.
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• Nov 23, 2021 · 3 years ago
  As an expert at BYDFi, I can confidently say that TurboTax is one of the most reliable options for handling cryptocurrency capital gains and losses. It simplifies the complex tax reporting process and ensures accurate calculations. With TurboTax, you can save time and avoid potential errors when filing your taxes. It's important to note that every individual's tax situation is unique, so consulting with a tax professional is always recommended for personalized advice.
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