How can I use Schedule D 8949 to calculate my capital gains and losses from cryptocurrency trading?

1 answers

• Nov 25, 2021 · 3 years ago
  When it comes to calculating capital gains and losses from cryptocurrency trading using Schedule D 8949, it's important to note that each trade must be reported individually. This means you'll need to list each trade separately on the form, including the date, description of the asset, cost basis, fair market value, and gain or loss. Additionally, you'll need to indicate whether the trade is short-term or long-term. It's crucial to keep detailed records of your trades, including screenshots or transaction history from your cryptocurrency exchange. This will help you accurately calculate your gains and losses and ensure compliance with tax regulations. If you're unsure about how to fill out Schedule D 8949, consider consulting with a tax professional who specializes in cryptocurrency taxation.
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