Question

Cryptocurrency and 8949 form

Forum|Forum|6 years ago
February 15, 2020
3 replies
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Hi,

Using Turbotax for the first time this year to report taxes on cryptocurrency. Trying to report my capital gains. In the past I have reported each bitcoin transaction separately on the 8949, and I uploaded my .csv file to Turbotax to reflect this. However, Turbotax groups all the transactions into just one line for short term and one line for long term gains.

Is this acceptable to the IRS? I would prefer for transparencys sake that I can choose to show all of the transactions, but I acknowledge that the summary is at least accurate.

fanfare

Employee

IRS requires details to be listed on Form 8949,
or on your own forms (e.g. consolidated 1099-B) which have the same information and in the same manner as Form 8949.
Either way, if you choose to summarize, you have to mail the transaction details to the IRS within three business days of IRS accepting your tax return.
Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary. TurboTax won't ask you about wash sales if you don't check the box.

Your 1099-B will tell you what category your transactions fall into.

no 1099-B? that's category C or F.

S

super

I have been looking through the entire web to find an answer to this. I used cointracker.io and I uploaded the entire CSV to turbotax. After doing that I checked off all transactions that were taxable events. Everything seemed OK, UNTIL i downloaded my return and it only showed one line for short term and one line for long term. This is a serious issue/bug on turbotax's end. It shouldnt ever be aggregated like that UNLESS the user chooses to do that.

H

Hamtaro

I receive 1099-B form from BlockFi. Am I supposed to file that on 1099-B or file it on Crypto section to fill in 8949? or both?

T

TomH17

I just logged in to post the same question. I hope we get an answer here!

ReneeM7122

Yes, Turbotax should groups all the cryptocurrency transactions into one line for short term and one line for long term gains. This is acceptable to the IRS. Cryptocurrency sold, exchanged, spent or converted, is treated as a sale of a property. Like property sales or the sale of stock, any gain or loss from the sale or trade of cryptocurrency is reported as a capital gain or loss. If you buy and sell it within 12 months, it’s treated as a short-term capital gain. If you hold it for over 12 months, it’s taxed at the lower, long-term, capital gain rates.

@TomH17