How does Turbo Tax calculate the cost of reporting cryptocurrency gains in 2020?

3 answers

• Nov 27, 2021 · 3 years ago
  Turbo Tax calculates the cost of reporting cryptocurrency gains in 2020 by considering the purchase price of the cryptocurrencies, any fees associated with the transactions, and the date of acquisition. They use the FIFO (First-In-First-Out) method to determine the cost basis of the cryptocurrencies sold. This means that the cost of the first cryptocurrencies purchased is considered first when calculating gains or losses. Turbo Tax also takes into account any capital gains or losses from other investments, as well as any applicable tax rates and deductions. Overall, Turbo Tax aims to provide accurate and compliant calculations for reporting cryptocurrency gains.
  670335
• Nov 27, 2021 · 3 years ago
  When it comes to calculating the cost of reporting cryptocurrency gains in 2020, Turbo Tax follows the guidelines set by the Internal Revenue Service (IRS). The IRS treats cryptocurrencies as property, so the cost basis for reporting gains is determined based on the fair market value of the cryptocurrencies at the time of acquisition. Turbo Tax uses historical price data from reputable cryptocurrency exchanges to determine the fair market value. They also consider any fees or expenses incurred during the acquisition or sale of the cryptocurrencies. It's important to note that Turbo Tax may require you to provide documentation or transaction records to support your reported gains.
  688230
• Nov 27, 2021 · 3 years ago
  As an expert in the cryptocurrency industry, I can tell you that Turbo Tax is a popular choice for reporting cryptocurrency gains in 2020. They have a user-friendly interface that simplifies the process of entering your cryptocurrency transactions and calculating the cost basis. Turbo Tax automatically pulls in transaction data from popular cryptocurrency exchanges, making it easier for you to report your gains accurately. However, it's always a good idea to double-check the calculations and consult with a tax professional if you have any complex transactions or unique circumstances. Remember, accurate reporting of cryptocurrency gains is crucial to avoid any potential issues with the IRS.
  698175