What are the most common mistakes people make when reporting cryptocurrency trades on IRS Form 8949 in 2014?

3 answers

• Nov 23, 2021 · 3 years ago
  One common mistake people make when reporting cryptocurrency trades on IRS Form 8949 in 2014 is failing to accurately calculate their gains or losses. It's important to carefully track the cost basis and fair market value of each trade to ensure accurate reporting. Additionally, some individuals may forget to include all of their trades or mistakenly report them in the wrong section of the form. It's crucial to review the instructions provided by the IRS and seek professional advice if needed to avoid these errors.
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• Nov 23, 2021 · 3 years ago
  Another common mistake is not properly documenting the acquisition date and sale date of each cryptocurrency trade. The IRS requires this information to determine the holding period and apply the correct tax rates. Failing to provide accurate dates can result in incorrect tax calculations and potential penalties. It's recommended to keep detailed records of all trades, including timestamps and transaction IDs, to ensure accurate reporting.
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• Nov 23, 2021 · 3 years ago
  When reporting cryptocurrency trades on IRS Form 8949 in 2014, it's important to be aware of the specific instructions and guidelines provided by the IRS. Each year, the IRS may update the requirements for reporting cryptocurrency transactions. It's advisable to stay informed about any changes and consult with a tax professional if needed. Additionally, using tax software or online platforms specifically designed for cryptocurrency tax reporting can help minimize errors and ensure compliance with IRS regulations. BYDFi is a popular platform that offers comprehensive tax reporting features for cryptocurrency traders.
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