![]() Your capital gain or loss - for example, $9,950.Īs you can see, A - F correspond with the different columns on Form 8949.Īn important note before you start filing the form out - it’s actually split into two parts.The cost basis of the asset at fair market value - for example, $20,000 + $50 in transaction fees.The sale price at fair market value - for example, $30,000.The date you disposed of the asset - for example, 20th August 2022.The date you acquired the asset - for example, 15th May 2022.A description of the asset - for example, 0.5 BTC.For each disposal, you’ll need the following information: So anytime you’ve ‘disposed’ of crypto by selling it, swapping it or spending it - you’ll include it on this form. This form is used to report any disposals of capital assets - in this instance, cryptocurrency. The IRS Form 8949 is a supplementary form for the 1040 Schedule D. How to report crypto gains on taxes (Form 8949) Your crypto income is reported using Schedule 1, Schedule C and Form 1040. Your crypto capital gains and losses are reported using IRS Form 8949, Schedule D and Form 1040. You might not need all of these forms, it all depends on the type of crypto investments and transactions you’ve made. ![]() Form 1040 ( Individual Tax Return Form).There are several forms you might need for IRS crypto reporting, including: Once you’ve got your figures ready, it’s time to fill out your tax return forms. If not, you can use our US Crypto Tax guide to learn how crypto is taxed in the US and how to calculate your crypto taxes. Just use our how to calculate your crypto taxes guide. If you’re using crypto tax software like Koinly - this step is simple. Any expenses relating to your investments.This means you’ll need to calculate your: Let’s go through each form step-by-step.īefore you can report your crypto tax to the IRS, you need to calculate your crypto totals. Sounds simple - but these forms can get confusing fast. Complete Form 1040 and attach the other forms you’ve completed.If you’re self-employed or operating a crypto business and have crypto income, use Schedule C instead. If you have crypto income from airdrops, forks, liquidity pools, bonuses and so on, you’ll need to complete Schedule 1. ![]() This includes your short-term and long-term capital gains and losses.
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