Cryptocurrency is considered and investment, the steps below will allow you to enter your transactions for these trades.
- In TurboTax Online you will find Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) as a selection under Investment Income
- In TurboTax Desktop you will enter Cryptocurrency as a Stock, Mutual Funds, Bonds, Other, under Investment Income
Be prepared with the following information: (be sure to aggregate short term and long term holding separately)
- Service name (examples: Coinbase)
- Asset name (examples: Bitcoin, Ethereum)
- Date of purchase
- Cost basis
- Date of sale
- Sale proceeds
- Associated costs to buy and/or sell
You can do a summary of long term and then short term combinations (long term holding is more than one year, short term holding is one year or less). Make one entry for each. You can then send the worksheets or statement with Form 8949 after your return is accepted, attached to Form 8453.
- Sale date can be the last date a sale occurred or 12/31/2021
- Purchase date can be 'Various'
If you are e-filing your tax return, then mail your statements (including Form 1099-B), along with Form 8453 to:
Internal Revenue Service
Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254
If you need a blank Form 8453, you can download this pdf, enter your address information and check the box for Form 8949 (this form is really just a cover sheet).
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