What are the requirements for filling out IRS forms 8949 for cryptocurrency gains and losses?

1 answers

• Nov 23, 2021 · 3 years ago
  As a representative of BYDFi, I can provide some insights into the requirements for filling out IRS forms 8949 for cryptocurrency gains and losses. The IRS requires individuals to report all cryptocurrency transactions, including buying, selling, and exchanging, on this form. You'll need to provide detailed information for each transaction, such as the date, type of transaction, amount of cryptocurrency involved, and the fair market value at the time of the transaction. It's important to note that the IRS treats cryptocurrency as property, so the same rules that apply to stocks and other investments also apply to cryptocurrency. Additionally, you'll need to calculate the gain or loss for each transaction and report it on the form. It's always a good idea to consult with a tax professional or refer to the IRS guidelines for more specific instructions on how to accurately fill out the form.
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