What are the differences between 4797 and 8949 in the context of cryptocurrency?

2 answers

• Raheel SheikhMar 23, 2022 · 3 years ago
  When it comes to cryptocurrency taxes, Form 4797 and Form 8949 are two forms that you need to be familiar with. Form 4797 is used to report gains or losses from the sale of business property, including cryptocurrency. This form is typically used by businesses or individuals who engage in cryptocurrency trading as a business. On the other hand, Form 8949 is used to report gains or losses from the sale of capital assets, including cryptocurrency. This form is used by individual investors or traders. So, the main difference between the two forms lies in the type of taxpayer they are intended for. If you are unsure which form to use, it's always best to consult with a tax professional to ensure you are accurately reporting your cryptocurrency transactions.
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• namialusDec 06, 2023 · 2 years ago
  Form 4797 and Form 8949 are tax forms that are used to report gains or losses from the sale of cryptocurrency. The main difference between the two forms is the type of property they cover. Form 4797 is used for reporting gains or losses from the sale of business property, including cryptocurrency. This form is typically used by businesses or individuals who engage in cryptocurrency trading as a business. On the other hand, Form 8949 is used for reporting gains or losses from the sale of capital assets, including cryptocurrency. This form is used by individual investors or traders. So, if you are a business owner or engage in cryptocurrency trading as a business, you would use Form 4797. If you are an individual investor or trader, you would use Form 8949. It's important to accurately fill out the appropriate form to comply with tax regulations and avoid any potential penalties or audits.
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