Cryptocurrency sales from mining business

[bigmac_13]

Starting in 2018 I mined cryptocurrency. I did this under a self-employed business model. I paid income tax on the mining rewards. I claimed business expenses accordingly. I also used capital to buy cryptocurrency directly. 

In 2020 I sold some of that mined cryptocurrency and directly purchased cryptocurrency.

Do I report this under "Sale of Business Property" > "Sales of Business or rental property that you haven't already reported" > Form 4797? 

I have done the calculations and have them separated into mined long term, mined short term, bought long term and bought short term.

OR 

Do I report these as Form 8949 on personal side?

I used a cryptocurrency tax processing site to calculate and tried the TT import and it put it under personal. I don't know how to import the information on the business side.

[npierson7]

You can report mined cryptocurrency and directly purchased cryptocurrency as a sale of asset. The value of the cryptocurrency at the time it was mined or bought becomes your cost basis in the capital asset. When a you sell crypto then the amount received will be reported as proceeds and will be offset against the cost basis in the asset. If the value of the crypto is higher at the time of the sale, then you have a capital gain. If the value is lower then you will have a capital loss. Every sale or trade of mined crypto must be reported on an IRS 8949 cryptocurrency tax form.  

Once you have your numbers you can enter them in TurboTax:

1. Open or continue your return.
2. Select Federal from the left menu, and Wages & Income from the menu near the top.
3. Scroll down and select Show more next to Investment Income.
4. Select Start or Revisit next to Cryptocurrency.
5. Follow the instructions and we'll calculate the gain or loss from the sale.

[bigmac_13]

I am using the desktop installed version of TT not the online verson so those instructions are not applicable for the installed version...

I understand and stated that I have done the math, so while your answer may help someone else, it doesn't answer my questions.

I have a crypto business, not a personal hobby. A hobbyist can't claim hardware expenses and other business expenses that were used 100% for the business purpose.

So when I tell TT installed Home/Bus version that I sold business assets it reports it on Form 4797.

As a business this seems correct.

Has a hobbyist, Form 8949 seems correct.

To expand my question, is it best to claim the mined cryptocurrency on 4797 and bought cryptocurrency on 8949 or both on 4797? I don't believe all on 8949 is correct as it was received as business income.

[npierson7]

You should use Form 8949 for both, mined and bought cryptocurrency. If you sold, for example, your computer you used for mining, you would use Form 4797, however cryptocurrency is always treated as property for tax purposes, it is subject to capital gains and losses, and it must be reported on Form 8949.