What are the important details to include when filling out Form 8949 for digital currency transactions?

1 answers

• Dec 24, 2021 · 3 years ago
  When filling out Form 8949 for digital currency transactions, it's crucial to include the following details: 1. Date of the transaction: This is the date when the digital currency was bought or sold. 2. Description of the digital currency: Provide a clear and concise description of the digital currency involved in the transaction, including the type and quantity. 3. Cost basis: Calculate the cost basis accurately, as it determines the gain or loss from the transaction. 4. Proceeds: The amount received from selling the digital currency. 5. Gain or loss: Calculate the gain or loss by subtracting the cost basis from the proceeds. 6. Adjustments: Include any adjustments that may be necessary, such as wash sales or other special circumstances. By including these important details, you can ensure that your Form 8949 is complete and accurate, which will help you fulfill your tax obligations and avoid any potential issues.
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