"How did you receive this investment?" Hundreds of Crypto transactions requiring one by one review

Forum|Forum|4 years ago
February 21, 2022
4 replies
46 views

Is there a CSV template that I can upload to populate this field for each transaction? I have the answer for all transactions but the template i get from cryptotrader.tax only includes asset, received, cost basis, date sold, proceeds and amount sold.

TurboTax Premier Online

C2525

Level 2

I am getting the same error. Has there been a solution to this? For context here is some info from a reddit forum: https://www.reddit.com/r/Cointracker/comments/svcioh/turbotax_wants_me_to_review_the_details_for_681/

https://www.reddit.com/r/koinly/comments/su9nj7/koinly_support_message_about_csv_files_and/?utm_source=share&utm_medium=web2x&context=3

HelenC12

Level 15

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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strikersAuthor

Level 2

Actually, the problem is turbo tax doesn't have the functionality for me to upload this origin information. I have the information for every single transaction and have a bullet proof paper trail. This is an issue with turbotax not allowing this field to be uploaded. It is unrealistic for a human to go through hundreds of transactions and select origin from a drop down. This process takes about a minute per transaction. If the functionality existed to upload this information along with all of the other information then this would not be a problem. I went ahead and skipped the review process and e-filed anyways. This is just silly and I expected far more from turbo tax especially since I paid a lot of money for a higher tier of service only to be told it's my problem. lol.