How do I report losses from cryptocurrency trading on my taxes?

1 answers

• Dec 27, 2021 · 3 years ago
  As a representative of BYDFi, I can provide some guidance on reporting losses from cryptocurrency trading on your taxes. Here are a few steps you can take: 1. Gather your trading records: Collect all the necessary information about your cryptocurrency trades, including dates, amounts, and any fees or expenses incurred. 2. Calculate your losses: Determine the cost basis of each cryptocurrency you traded and subtract it from the sale price to calculate your losses. 3. Report your losses: Use IRS Form 8949 to report your losses from cryptocurrency trading. Make sure to provide detailed information for each transaction, including the date, description, and amount of the loss. 4. Consult a tax professional: If you're unsure about how to report your losses or have complex trading activities, it's always a good idea to seek advice from a tax professional who specializes in cryptocurrency taxation. Remember, accurate reporting is crucial to avoid any potential issues with the IRS, so take the time to gather all the necessary information and report your losses correctly.
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