How does 1099 b cost basis reporting affect the taxation of cryptocurrency transactions?

3 answers

• Dec 27, 2021 · 3 years ago
  Sure! The 1099 b cost basis reporting is a requirement by the IRS for brokers to report the cost basis of securities sold by their customers. This includes cryptocurrency transactions. By having this reporting in place, it becomes easier for the IRS to track and tax cryptocurrency transactions. It ensures that individuals accurately report their gains or losses from cryptocurrency investments. So, if you receive a 1099 b form from your cryptocurrency exchange, make sure to include it when filing your taxes to avoid any penalties or audits.
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• Dec 27, 2021 · 3 years ago
  The 1099 b cost basis reporting is a game-changer for cryptocurrency taxation. It brings more transparency to the IRS regarding cryptocurrency transactions. Before this reporting requirement, it was easier for individuals to underreport or even hide their gains from cryptocurrency investments. Now, with the 1099 b reporting, the IRS has access to accurate information about the cost basis of cryptocurrency transactions, making it harder for individuals to evade taxes. So, if you're involved in cryptocurrency trading, make sure to keep track of your 1099 b forms and report your gains or losses accurately.
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• Dec 27, 2021 · 3 years ago
  As an expert in the cryptocurrency industry, I can say that the 1099 b cost basis reporting has had a significant impact on the taxation of cryptocurrency transactions. It has made it more difficult for individuals to avoid paying taxes on their cryptocurrency gains. The IRS now has access to detailed information about the cost basis of cryptocurrency transactions, which allows them to ensure that individuals are reporting their gains accurately. This reporting requirement has brought more legitimacy to the cryptocurrency industry and has made it clear that cryptocurrency investments are subject to taxation, just like any other investment.
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