What changes were made to the IRS Form 8949 instructions in 2014 regarding digital currencies?

2 answers

• Nov 23, 2021 · 3 years ago
  Ah, the changes made to the IRS Form 8949 instructions in 2014 regarding digital currencies! It was a big deal for the cryptocurrency community. The IRS finally acknowledged the existence of digital currencies and provided some guidance on how to report them on tax returns. Before 2014, it was a bit of a gray area, and many people were unsure how to handle their cryptocurrency transactions. But the updated instructions made it clear that digital currencies should be treated as property for tax purposes. This means that you need to report any gains or losses from buying, selling, or exchanging digital currencies on Form 8949. The instructions also explained how to calculate the cost basis and report the transactions accurately. So, if you're involved in the crypto world, make sure you're familiar with these instructions to stay on the right side of the IRS.
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• Nov 23, 2021 · 3 years ago
  As a representative of BYDFi, I can tell you that the changes made to the IRS Form 8949 instructions in 2014 regarding digital currencies were significant. The IRS recognized the growing popularity of digital currencies and wanted to ensure that taxpayers were properly reporting their transactions. The updated instructions clarified that digital currencies should be treated as property, not currency, for tax purposes. This means that taxpayers need to report any gains or losses from the sale or exchange of digital currencies on Form 8949. The instructions also provided guidance on how to calculate the cost basis and report the transactions accurately. It's important for taxpayers to understand these instructions and accurately report their digital currency transactions to comply with tax regulations.
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