A. - Yes, start with Investment Income, then Stocks, Cryptocurrency, Mutual Funds...; however, you won't need to go back to the very beginning each time because when you are done entering one trade, you will see the page Your investment sales summary. At the end of your sales summary list is the button Add more sales. Just select Add more sales and repeat the process for the next trade.
B. - Yes, Form 8949 will automatically be populated "in the background" as you enter your information. When you are on the page Now, enter one sale... in the Sales section you will see the option to select whether the trade was covered or noncovered. Upon selecting noncovered, Form 8949 will populate with the information that you enter. You do not need to manually complete Form 8949.
C. - As noted above, Form 8949 will automatically populate with the information that you enter about your Prosper transactions. There is no need to separately prepare Form 8949 and further, there is no need to print Form 8949 and hand mail it to the IRS. Form 8949 will be generated and can be e-filed, along with your other tax forms, when you are ready to e-file your return. If you want to see what Form 8949 looks like, in a Google search bar, type 2021 Form 8949. In the search list you will see the IRS Form 8949 and probably the IRS instructions for Form 8949. Both of these documents are downloadable pdf files.
@loyal-but---user
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
