The problem is that the IRS expects each transaction looked at in case any of the transactions were losses due to personal use, such as lunch at Starbucks or payments towards bills, etc.
- Losses on use of personal property should not be included on your return.
- However. all the gains are included along with any transactions that were investment related.
One option is to do this outside of TurboTax and only enter the total lines for short term and long term transactions that do qualify to be reported. Please see the TurboTax FAQ: How do I enter a large number of stock transactions in TurboTax Online? Source: AmyC
- You'll have to mail in the supporting details but you'll be able to E-file your tax return.
Cryptocurrency received as payment for goods and services is taxed as earned income:
- If you earned money by providing a service or selling something, you’d have to report it as earned income (either wages or self-employment income) as if you’d been paid in cash.
- See How do I report income from self-employment?
Cryptocurrency sold, exchanged, spent or converted, is treated as sale of 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. See How do I report Bitcoin or other cryptocurrency as a capital gain?
- 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.
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