Filing Bitcoin Trades with the IRS

For those of you out there who traded bitcoin and prefer doing your own taxes through turbox tax may find the following fairly useful. This is a response from a page on their forums. I’m providing the important points here and a link at the bottom:

[pastacode lang=”markdown” manual=”I’d%20guess%20you%20didn’t%20get%20a%201099-B%20for%20those%20trades.%0A%0AUse%20the%20%22Stocks%2C%20Mutual%20Funds%2C%20Bonds%2C%20Other%22%20interview%20telling%20TurboTax%20that%20no%201099-B%20was%20received.%0AUse%20the%20%22Everything%20else%22%20investment%20type.%0AMake%20sure%20your%20list%20reports%20the%20same%20information%20that%20a%20Form%208949%20would%20report%2C%20separated%20between%20long%20term%20and%20short%20term%20holdings%2C%20with%20dollar%20subtotals%20for%20each%20term%3A%0A%0AWhat%20was%20sold%0ADate%20of%20sale%0AProceeds%20of%20sale%0ACost%20basis%0ADate%20of%20acquisition%0A%0A%0AOn%20the%20page%20%22Some%20Basis%20Info%20About%20This%20Sale%22%20enter%20%22Summary%20of%20ST%20Crypto%20Currency%20Trades%20%22%20or%20%22Summary%20of%20LT%20Crypto%20Currency%20Trades%22%20depending%20which%20group%20you’re%20working%20on.%20Enter%20the%20total%20dollar%20amount%20of%20proceeds%20for%20each%20group%20as%20appropriate%20and%20you%20can%20use%2012%2F31%2F2017%20for%20date%20of%20sale.%0A%0AOn%20the%20%22Tell%20Us%20How%20Your%20Acquired%20This%20Property%22%20page%20tick%20%22Purchased%22.%0AOn%20the%20%22Enter%20Purchase%20Information%22%20page%20enter%20the%20summary%20cost%20and%20the%20word%20%22various%22%20in%20the%20Date%20of%20Purchase%20box.%0AOn%20the%20%22When%20Was%20This%20Investment%20Acquired%22%20page%20you’ll%20answer%20%22Yes%22%20for%20the%20long%20term%20trades%20and%20%22No%22%20for%20the%20short%20term%20trades.%0A%0AIf%20you’re%20mailing%20in%20your%20income%20tax%20returns%20you%20can%20include%20your%20manipulated%20substitute%20for%20a%20Form%208949%20as%20part%20of%20your%20filing%20though%20I’d%20add%20%22See%20Schedule%22%20to%20your%20descriptions%20of%20what%20was%20sold.%0A%0AIf%20you%20are%20e-filing%20your%20tax%20return%2C%20then%20mail%20your%20statements%20along%20with%20Form%208453%20to%3A%0A%0A%20Internal%20Revenue%20Service%0A%20Attn%3A%20Shipping%20and%20Receiving%2C%200254%0A%20Receipt%20and%20Control%20Branch%0A%20Austin%2C%20TX%2073344-0254%0A%0AForm%208453%3A%20https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-pdf%2Ff8453.pdf” message=”” highlight=”” provider=”manual”/]

This was taken from: https://ttlc.intuit.com/questions/4240094-i-have-over-2k-crypto-trades-to-report-i-used-bitcoin-tax-to-get-my-overall-gain-loss-and-generate-8949-but-do-i-have-to-enter-each-trade-how-do-i-report-a-summary

I just wanted to capture these instructions in case that page every gets removed. It’s important to keep a record 🙂

One thought on “Filing Bitcoin Trades with the IRS

  1. Yes you have to report every trade on that form. There is software that turns your statements into the 8949 such as tradelog.

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