How do I use adjustment codes when filing form 8949 for cryptocurrency trades?

3 answers

• Nov 29, 2021 · 3 years ago
  When filing form 8949 for cryptocurrency trades, adjustment codes are used to indicate any necessary adjustments to the cost basis or proceeds of the trades. These codes help the IRS understand the reasons behind any discrepancies in reported values. For example, if you received a refund or reimbursement for a previous trade, you would use an adjustment code to reflect that in your filing. It's important to accurately report these adjustments to ensure compliance with tax regulations.
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• Nov 29, 2021 · 3 years ago
  Adjustment codes are like little notes you attach to your cryptocurrency trades on form 8949. They help you explain any changes or adjustments you need to make to the reported values. Think of them as footnotes that provide additional context to the IRS. By using adjustment codes, you can ensure that your tax filing accurately reflects the true values of your cryptocurrency trades.
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• Nov 29, 2021 · 3 years ago
  At BYDFi, we recommend using adjustment codes when filing form 8949 for cryptocurrency trades. These codes allow you to provide additional information to the IRS about any adjustments made to the reported values. It's important to use the correct adjustment codes to accurately reflect the changes in your trades. Make sure to consult a tax professional or refer to the IRS guidelines for the appropriate adjustment codes to use.
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