What reports can I expect with selling bitcoin?

Good morning, great question.

it depends.... On how the crypto transactions reported?

When you place crypto transactions through a brokerage or from using these digital currencies as a means for payment, this constitutes a sale or exchange. As a result, you’ll need to document your crypto sales details, including how much you bought it for and when. These transactions are typically reported on Form 8949, Schedule D, and Form 1040.

1099-B, Proceeds from Broker and Barter Exchange Transactions

If you traded crypto in an investment account or on a crypto exchange or used it to make payments for goods and services, you may receive Form 1099-B reporting these transactions. In other investment accounts like those held with a stock broker, this information is usually provided on this 1099 Form. However, not every platform provides these forms. In this case, they can typically still provide the information even if it isn't on a 1099-B.

1099-MISC or 1099-NEC

If you mined crypto or received crypto as an award, then you might receive either Form 1099-MISC, Miscellaneous Income, or 1099-NEC, Nonemployee Compensation. These forms are used to report how much ordinary income you were paid for different types of work-type activities. The information form these forms can be used to help you prepare Schedule C, Profit or Loss from Business and Schedule SE, Self-Employment Tax.

When any of these 1099 forms are issued to you, they're also sent to the IRS so that they can match the information on the forms to what you report on your tax return.

Here's a link to a Crypto Tax Guide that goes into more detail.

Hello wagner4599,

Thanks for joining us today. As to your question, the reports you will get will depend on your servicer, but they should at least give you the basic transactional reports showing purchases and sells. Some will create the 8949 and/or give you a 1099-B that you can use with your tax return.

But, the bigger concern is whether or not they have all the correct information to give you accurate reports. If your crypto activity begins and ends with the same servicer, you should be fine. But, if you have moved your crypto from different ledgers to different servicers multiple times, the historical information can easily be lost. In those situations, I have known crypto investors to create their own reports from downloading their data.

There are also aggregators out there that will attempt to piece together your data for you, but you should always double-check their work.

Thanks-