Crypto capital gain/ losses filing form 8949

[Anonymous]

Greetings, I am interested in how Turbo Tax can help me file the crypto transactions to satisfy the IRS form 8949.

I thought that all one had to do was to look at the beginning balances of the crypto exchanges you were using and compare it to the total balance you had at the end of the year and determine by simple math whether it was a gain or loss. However, after some reading on the subject, I have found that it is more complicated than that.

Apparently, The IRS was you to list every trading transaction during the course of the year no matter how small it was. Is my assumption correct?

If that is the case, if one used trading software such as Bitsgap and does many small trades every day, this could mean thousands of small micro-transactions a year. Do all of these transactions have to be listed on form 8949? This could be hundreds of pages of transactions.

From looking at the video from Turbo Tax, it states that Turbo Tax can be connected to my crypto exchanges and actually retrieve all of those transactions and even determine the cost basis and whether there is a gain or loss and file that information on the form 8949. Can you please tell me if this is correct or am I missing something here? This would be a great help to me.

Thank You

[RobertB4444 · Accepted solution]

Everything that you said is correct.  

You have to list every transaction, no matter how small, on form 8949.  Those transactions can be imported into TurboTax if TurboTax has a relationship to your exchange (check the list).

Even if you can't import from your exchange there are work arounds.  But they generally involve printing and mailing things.

Check out all of the crypto information here.

@Anonymous 

[Anonymous]

Thank You for your reply