How can I properly fill out IRS form 4686 for reporting cryptocurrency gains and losses?

1 answers

• LeodatriboMar 08, 2023 · 2 years ago
  As an expert in cryptocurrency taxation, I can provide you with a comprehensive guide on filling out IRS form 4686 for reporting cryptocurrency gains and losses. Here are the steps: 1. Start by entering your personal information, including your name, address, and social security number. 2. Report each cryptocurrency transaction separately, including the date, type of cryptocurrency, amount bought or sold, and the fair market value at the time of the transaction. 3. Calculate the gain or loss for each transaction by subtracting the cost basis from the fair market value. 4. Summarize the total gains and losses for the tax year and enter the result on the appropriate line of the form. 5. Sign and date the form before submitting it to the IRS. Remember to keep detailed records of your cryptocurrency transactions and consult with a tax professional if needed. If you have any further questions, feel free to ask. I'm here to help.
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