What are the specific instructions for filling out the freetaxusa form 8949 for cryptocurrency investments?

1 answers

• Nov 26, 2021 · 3 years ago
  Absolutely! Here's a step-by-step guide to help you fill out the freetaxusa form 8949 for your cryptocurrency investments: 1. Begin by entering your personal details, including your name, social security number, and the tax year you're filing for. 2. Provide a detailed description of each cryptocurrency transaction, including the date, type of cryptocurrency, quantity, and cost basis. 3. If you sold any cryptocurrency, calculate the capital gain or loss by subtracting the cost basis from the sale price. Repeat this calculation for each transaction. 4. Enter the total gain or loss on line 1a of the form 8949. 5. If you have any adjustments to the gain or loss, such as wash sales or other adjustments, you'll need to complete Schedule D. 6. Transfer the total gain or loss from form 8949 to Schedule D, line 7. Remember to keep accurate records of your cryptocurrency transactions for tax purposes. I hope this helps! If you have any more questions, feel free to ask.
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