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What are the most common 8949 adjustment codes used in the cryptocurrency industry?

avatarPost SharmaDec 26, 2021 · 3 years ago1 answers

Can you provide a list of the most commonly used 8949 adjustment codes in the cryptocurrency industry? I'm trying to understand the different types of adjustments that are typically made when reporting cryptocurrency transactions on Form 8949.

What are the most common 8949 adjustment codes used in the cryptocurrency industry?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    As a representative of BYDFi, I can provide you with some insights into the most common 8949 adjustment codes used in the cryptocurrency industry. The codes that are frequently used include Code A for short-term gain or loss, Code B for long-term gain or loss, Code C for short-term gain or loss with cost basis reported to the IRS, Code D for long-term gain or loss with cost basis reported to the IRS, Code E for short-term gain or loss with cost basis not reported to the IRS, and Code F for long-term gain or loss with cost basis not reported to the IRS. These codes help categorize the gains or losses from cryptocurrency transactions, making it easier for tax reporting purposes. However, it's always advisable to consult with a tax professional to ensure accurate reporting.