What are the steps to fill out Form 8949 for cryptocurrency trades made on multiple exchanges?

3 answers

• Nov 26, 2021 · 3 years ago
  Sure! Here's a step-by-step guide on how to fill out Form 8949 for cryptocurrency trades made on multiple exchanges: 1. Start by gathering all the necessary information, including the date of each trade, the type of cryptocurrency involved, the quantity bought or sold, and the proceeds or cost basis. 2. Next, organize your trades by exchange. Create separate sections for each exchange you used. 3. For each trade, fill in the appropriate boxes on Form 8949. Include the date, description of property (cryptocurrency), the quantity, the proceeds, and the cost basis. 4. If you have multiple trades for the same cryptocurrency on the same day, you can combine them and report the total proceeds and cost basis. 5. Repeat this process for each exchange you used. 6. Once you have completed all the sections for each exchange, transfer the totals to Schedule D, which is used to calculate your overall capital gains or losses. 7. Make sure to double-check all the information before submitting your tax return. Remember, it's always a good idea to consult with a tax professional or use tax software to ensure accuracy and compliance with IRS regulations.
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• Nov 26, 2021 · 3 years ago
  Filling out Form 8949 for cryptocurrency trades made on multiple exchanges can be a bit confusing, but don't worry, I've got you covered! Here's a step-by-step guide: 1. Gather all the necessary information, including the date, type of cryptocurrency, quantity, and proceeds or cost basis for each trade. 2. Organize your trades by exchange. Keep a separate record for each exchange you used. 3. Fill in the appropriate boxes on Form 8949 for each trade. Include the date, description of property (cryptocurrency), quantity, proceeds, and cost basis. 4. If you have multiple trades for the same cryptocurrency on the same day, you can combine them and report the total proceeds and cost basis. 5. Repeat this process for each exchange you used. 6. Once you have completed all the sections for each exchange, transfer the totals to Schedule D, which is used to calculate your overall capital gains or losses. 7. Double-check all the information before submitting your tax return to ensure accuracy and compliance with IRS regulations.
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• Nov 26, 2021 · 3 years ago
  As an expert at BYDFi, I can provide you with a step-by-step guide on how to fill out Form 8949 for cryptocurrency trades made on multiple exchanges: 1. Begin by gathering all the necessary information for each trade, including the date, type of cryptocurrency, quantity, and proceeds or cost basis. 2. Organize your trades by exchange. Create separate sections for each exchange you used. 3. Fill in the appropriate boxes on Form 8949 for each trade. Include the date, description of property (cryptocurrency), quantity, proceeds, and cost basis. 4. If you have multiple trades for the same cryptocurrency on the same day, you can combine them and report the total proceeds and cost basis. 5. Repeat this process for each exchange you used. 6. Once you have completed all the sections for each exchange, transfer the totals to Schedule D, which is used to calculate your overall capital gains or losses. 7. Before submitting your tax return, make sure to review all the information for accuracy and compliance with IRS guidelines.
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