Crypto ETF, 1099B and Form 8949

Forum|Forum|4 years ago
April 10, 2022
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I bought ETHE and on my broker's 1099-B it lists lots of small individual transactions with no cost basis or date acquired. TurboTax is asking for this information, though, especially the Cost basis (I can put 'various' for Date Acquired, and it's all Short Term this year). The 1099B also lists a 'Principal payment Cost Basis Factor (e.g. [phone number removed]) for each line item. I am very confused how to proceed in TurboTax. Thanks in advance to whomever can help me out.

AmyC

Employee

It sounds like you are typing in rather than uploading. It may easier for you to just list a summary -short term covered and short term noncovered totals and mail in a copy of the 1099-B.

See what the IRS expects from you here. Be sure to go through your transactions and remove all personal property losses. The IRS expects each transaction looked at in case of any of the transactions were loss due to personal use, such as lunch at Starbucks or payments towards bills, etc. Loss on use of personal property should not be included on your return. The gains are included along with any (gain or loss) transactions that were investment related.

You should have a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your carryover information, and proof of your basis in your various investments. You must keep tax records from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses, carryforwards, and basis.

Additionally, if you have a foreign wallet, that is considered a foreign asset and may require filing Form 8938. See About Form 8938, Statement of Specified Foreign Financial Assets

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