What are the common mistakes to avoid when using TurboTax Desktop for filing taxes on cryptocurrency investments?

3 answers

• Feb 19, 2022 · 3 years ago
  One common mistake to avoid when using TurboTax Desktop for filing taxes on cryptocurrency investments is failing to report all of your transactions. It's important to accurately report all of your cryptocurrency trades, including buys, sells, and exchanges. This information is necessary for calculating your capital gains or losses. Failing to report all of your transactions can lead to penalties and audits from the IRS.
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• Feb 19, 2022 · 3 years ago
  Another mistake to avoid is not keeping proper records of your cryptocurrency transactions. It's crucial to maintain detailed records of your trades, including the date, time, amount, and value of each transaction. This will help you accurately calculate your gains or losses and provide evidence in case of an audit. Without proper records, it can be challenging to accurately report your cryptocurrency investments.
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• Feb 19, 2022 · 3 years ago
  When using TurboTax Desktop for filing taxes on cryptocurrency investments, it's important to review your tax return carefully before submitting it. Double-check all the information you've entered, including your cryptocurrency transactions and any deductions or credits you're claiming. Mistakes or inaccuracies in your tax return can lead to penalties or delays in processing. Take the time to review your return thoroughly to ensure its accuracy.
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