How can cryptocurrency traders handle short-term transactions that are not reported on form 1099-b?

Sanam RajAug 19, 2023 · 2 years ago3 answers

What are some strategies that cryptocurrency traders can use to handle short-term transactions that are not reported on form 1099-b?

3 answers

Stephen ElkinsJun 24, 2020 · 5 years ago
One strategy that cryptocurrency traders can use to handle short-term transactions that are not reported on form 1099-b is to keep detailed records of all their transactions. This includes recording the date, time, amount, and purpose of each transaction. By maintaining accurate records, traders can provide evidence to the IRS if necessary and ensure that they are properly reporting their income.
DenemeBonusuAug 30, 2020 · 5 years ago
Another strategy is to consult with a tax professional who specializes in cryptocurrency. These professionals are familiar with the unique tax implications of cryptocurrency trading and can provide guidance on how to handle short-term transactions that are not reported on form 1099-b. They can help traders navigate the complex tax laws and ensure compliance with reporting requirements.
TahjaeNov 19, 2020 · 5 years ago
At BYDFi, we recommend that cryptocurrency traders consult with a tax professional to handle short-term transactions that are not reported on form 1099-b. Tax professionals can provide personalized advice based on the trader's specific situation and help them minimize their tax liability. Additionally, traders should consider using tax software or tools that are specifically designed for cryptocurrency transactions to simplify the reporting process.