What are the common mistakes to avoid when completing a 1099-B form for cryptocurrency trades?

3 answers

• Nov 23, 2021 · 3 years ago
  One common mistake to avoid when completing a 1099-B form for cryptocurrency trades is failing to report all of your transactions. It's important to include every buy, sell, and trade, even if it resulted in a loss. The IRS requires accurate reporting, and failing to do so can lead to penalties and audits. So make sure to keep track of all your cryptocurrency transactions and report them correctly on your 1099-B form.
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• Nov 23, 2021 · 3 years ago
  Another mistake to avoid is not properly calculating your gains and losses. Cryptocurrency trades can be complex, and it's important to accurately calculate your gains or losses for each transaction. This includes factoring in transaction fees and any other costs associated with the trade. Failing to calculate your gains and losses correctly can result in inaccurate reporting and potential tax liabilities. So take the time to carefully calculate your gains and losses before completing your 1099-B form.
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• Nov 23, 2021 · 3 years ago
  At BYDFi, we understand the importance of accurately completing a 1099-B form for cryptocurrency trades. One common mistake to avoid is not seeking professional advice when needed. If you're unsure about how to properly report your cryptocurrency trades or have complex transactions, it's always a good idea to consult with a tax professional. They can provide guidance and ensure that you're meeting all the necessary requirements. So don't hesitate to reach out to a tax professional if you have any doubts or questions about completing your 1099-B form.
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