Which form, 8949 or 4797, is recommended for reporting cryptocurrency transactions?

1 answers

• Nov 23, 2021 · 3 years ago
  When it comes to reporting cryptocurrency transactions, the recommended form to use depends on your specific circumstances. Form 8949 is generally used for reporting capital gains and losses from the sale or exchange of assets, including cryptocurrencies. This form provides a detailed breakdown of each transaction, allowing you to report your cryptocurrency transactions accurately. On the other hand, Form 4797 is used for reporting the sale or exchange of business property. If you are actively trading cryptocurrencies as a business, you may need to use Form 4797. However, if you are an individual investor, Form 8949 is usually the more appropriate choice. It's important to consult with a tax professional to determine which form is best for your situation.
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