What are the specific instructions for filling out the IRS form 8949 code Q for cryptocurrency trades?

1 answers

• Nov 27, 2021 · 3 years ago
  Filling out the IRS form 8949 code Q for cryptocurrency trades may seem daunting, but it's actually quite straightforward. Here's a step-by-step guide: 1. Start by entering your personal information, such as your name and social security number. 2. In Part I, provide details about the cryptocurrency transaction, including the date of acquisition, date of sale or exchange, and the proceeds from the transaction. 3. In Part II, calculate the cost or other basis of the cryptocurrency, any adjustments, and the resulting gain or loss. 4. Repeat the process for each cryptocurrency trade you made during the tax year. 5. Transfer the totals to Schedule D of your tax return. Remember to keep accurate records of your cryptocurrency transactions and consult a tax professional if needed. I hope this helps! If you have any further questions, feel free to ask.
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