Is there a step-by-step guide for completing tax form 8949 instructions for cryptocurrency investments?

1 answers

• LogixtuDec 30, 2020 · 5 years ago
  Sure thing! Here's a step-by-step guide to completing tax form 8949 for cryptocurrency investments: 1. Start by gathering all your cryptocurrency transaction records, including dates, amounts, and transaction types. 2. Determine the cost basis for each transaction, which is the original purchase price of the cryptocurrency. 3. Calculate the capital gain or loss for each transaction by subtracting the cost basis from the selling price. 4. Fill out tax form 8949, reporting each individual transaction and its corresponding gain or loss. 5. Transfer the total gain or loss from tax form 8949 to Schedule D of your tax return. 6. File your tax return and make sure to include all necessary documentation. Remember to consult with a tax professional or accountant for personalized advice based on your specific situation.
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