What are the common mistakes people make when filing crypto taxes on Robinhood?

4 answers

• Dec 18, 2021 · 3 years ago
  One common mistake that people make when filing their crypto taxes on Robinhood is failing to report all of their cryptocurrency transactions. It's important to remember that every buy, sell, trade, and even earning interest on your crypto assets should be reported. Failing to report any of these transactions can result in penalties and legal issues. Make sure to keep track of all your transactions and consult with a tax professional if needed.
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• Dec 18, 2021 · 3 years ago
  Another mistake is not properly calculating the cost basis of your crypto assets. The cost basis is the original value of your cryptocurrency when you acquired it. This is important for determining your capital gains or losses when you sell or trade your crypto. Failing to accurately calculate the cost basis can lead to incorrect tax reporting and potentially higher tax liabilities. Use proper accounting methods and tools to ensure accurate calculations.
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• Dec 18, 2021 · 3 years ago
  As a representative of BYDFi, I can say that one common mistake people make when filing crypto taxes on Robinhood is relying solely on the platform's tax documents. While Robinhood provides tax documents, they may not include all the necessary information for accurate tax reporting. It's important to cross-reference and verify the information provided by Robinhood with your own transaction records. Additionally, consider consulting with a tax professional to ensure compliance with tax regulations.
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• Dec 18, 2021 · 3 years ago
  One mistake to avoid is not keeping proper records of your crypto transactions. It's crucial to maintain detailed records of all your buys, sells, trades, and any other crypto-related activities. This includes dates, amounts, transaction fees, and any other relevant details. Having organized records will make it easier to accurately report your crypto taxes and provide necessary documentation in case of an audit.
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