What are the specific requirements for reporting digital currency gains and losses on Form 8949 vs Schedule D?

1 answers

• Feb 18, 2022 · 3 years ago
  At BYDFi, we understand the importance of accurately reporting digital currency gains and losses on Form 8949 and Schedule D. Form 8949 is where you report the details of each individual transaction, such as the date of acquisition, date of sale, proceeds, cost basis, and gain or loss. Once you've completed Form 8949, you'll transfer the totals to Schedule D, which summarizes your capital gains and losses. It's crucial to carefully review your transactions and ensure that all necessary information is included. If you're unsure about how to report your digital currency transactions, it's always a good idea to consult with a tax professional or use tax software to ensure compliance with IRS guidelines.
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