What are the key differences between 1099-B tax forms for traditional investments and those for cryptocurrency trades?

1 answers

• Feb 17, 2022 · 3 years ago
  At BYDFi, we understand the importance of tax compliance for cryptocurrency traders. When it comes to tax forms, the key differences between 1099-B for traditional investments and those for cryptocurrency trades are worth noting. Traditional investments are reported on Form 1099-B, which provides detailed information about the proceeds from the sale, cost basis, and capital gains or losses. However, cryptocurrency trades are reported on Form 1099-K, which only includes the gross amount of transactions. This means that cryptocurrency traders need to keep track of their own cost basis and calculate their capital gains or losses separately. It's crucial for cryptocurrency traders to maintain accurate records and consult with a tax professional to ensure compliance with tax regulations.
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