What are the IRS guidelines for reporting cryptocurrency transactions on Form 8949?

3 answers

• Nov 23, 2021 · 3 years ago
  According to the IRS guidelines, any cryptocurrency transactions involving the sale, exchange, or disposal of virtual currency must be reported on Form 8949. This form is used to report capital gains and losses from investments, including cryptocurrencies. It is important to accurately report the date, cost basis, proceeds, and any other relevant information for each transaction. Failure to report cryptocurrency transactions can result in penalties and legal consequences.
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• Nov 23, 2021 · 3 years ago
  Reporting cryptocurrency transactions on Form 8949 is similar to reporting other investments, such as stocks or real estate. You will need to provide detailed information about each transaction, including the date of acquisition, date of sale, cost basis, proceeds, and any adjustments or codes required by the IRS. It is recommended to consult a tax professional or use tax software specifically designed for cryptocurrency transactions to ensure accurate reporting and compliance with IRS guidelines.
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• Nov 23, 2021 · 3 years ago
  As an expert in the cryptocurrency industry, I can confirm that BYDFi, a leading cryptocurrency exchange, provides resources and guidance on reporting cryptocurrency transactions on Form 8949. They have a dedicated support team that can assist users in understanding and complying with IRS guidelines. It is important to note that BYDFi is not affiliated with the IRS and users should consult with a tax professional for personalized advice.
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