How does TurboTax handle investment income from cryptocurrency trading?

3 answers

• Mostafa BozaraziSep 23, 2021 · 4 years ago
  TurboTax is a popular tax preparation software that can handle investment income from cryptocurrency trading. It offers the option to automatically import data from supported cryptocurrency exchanges, making it easier to report your cryptocurrency transactions. TurboTax supports various types of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. When it comes to calculating capital gains or losses from cryptocurrency trading, TurboTax uses the FIFO (First-In, First-Out) method by default. This means that the software will calculate your gains or losses based on the order in which you acquired your cryptocurrencies. It's important to note that TurboTax is not responsible for determining the fair market value of your cryptocurrencies at the time of acquisition or sale. You should consult with a tax professional or use a reliable cryptocurrency tax tool to ensure accurate reporting.
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• ThearthManMay 18, 2023 · 2 years ago
  TurboTax is great for handling investment income from cryptocurrency trading. It can automatically import data from supported cryptocurrency exchanges, which saves you time and effort. You can easily add your cryptocurrency transactions to TurboTax and it will calculate your capital gains or losses for you. TurboTax supports a wide range of cryptocurrencies, so you don't have to worry about compatibility issues. Just make sure to keep track of your transactions and have all the necessary information ready when using TurboTax for cryptocurrency tax reporting.
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• MANIK BHARDWAJDec 24, 2023 · 2 years ago
  As an expert in the field, I can say that TurboTax is a reliable option for handling investment income from cryptocurrency trading. It offers a user-friendly interface and supports automatic data import from popular cryptocurrency exchanges. TurboTax also provides guidance on how to report your cryptocurrency transactions and calculate your capital gains or losses. It's important to note that TurboTax is not affiliated with any specific cryptocurrency exchange, including BYDFi. Therefore, it can be used with any exchange that provides transaction data in a compatible format. However, it's always a good idea to review your tax return with a tax professional to ensure accuracy and compliance with tax regulations.
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