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anonymous8
Level 2

Do I have to file Form 8949 for cryptocurrency?

I made a very few cryptocurrency transactions in 2020 and thus I didn't receive any 1099 form from Coinbase. I also sold stocks and receive 1099-B from my other broker. Total gains from my 1099-B from my broker I put in 1a, of Schedule D. The question is:

Can I add my total crypto gains to stocks gains and put everything in 1a, of Schedule D? OR... should I complete Form 8949 and fill crypto gains in Schedule D, point 3?
8 Replies
gloriah5200
Expert Alumni

Do I have to file Form 8949 for cryptocurrency?

Yes, you should report the sale of capital assets like cryptocurrency on Form 8949 and then carry the totals to Sch D.

 

Depending on whether or not sales of capital assets have been reported to IRS or not you would use Form 8949 to report sales and exchanges of capital assets.  

 

You may be required to use Form 8949 for some transactions, while others can be reported straight on Sch D.

 

Form 8949 allows you and the IRS to reconcile amounts that were reported to you and the IRS on Forms 1099-B or 1099-S (or substitute statements) with the amounts you report on your return.

 

If you receive Forms 1099-B or 1099-S (or substitute statements), always report the proceeds (sales price) shown on the form (or statement) in column (d) of Form 8949.

 

If Form 1099-B (or substitute statement) shows that the cost or other basis was reported to the IRS, always report the basis shown on that form (or statement) in column (e).

 

If any correction or adjustment to these amounts is needed, make it in column (g). See How To Complete Form 8949, Columns (f) and (g), later, for details about these adjustments.

 

If all Forms 1099-B (or all substitute statements) you received show basis was reported to the IRS and no correction or adjustment is needed, you may not need to file Form 8949. See Exception 1 under the instructions for line 1,

 

Individuals.

Individuals use Form 8949 to report the following.

• The sale or exchange of a capital asset not reported on another form or schedule.

• Gains from involuntary conversions (other than from casualty or theft) of capital assets not used in your trade or business.

• Nonbusiness bad debts.

• Worthlessness of a security.

• The election to defer capital gain invested in a qualified opportunity fund (QOF).

• The disposition of interests in QOFs.

 

If you are filing a joint return, complete as many copies of Form 8949 as you need to report all of your and your spouse's transactions.

 

You and your spouse may list your transactions on separate forms or you may combine them. However, you must include on your Schedule D the totals from all Forms 8949 for both you and your spouse.

 

You can report them on Form 8949 as noncovered securities if the date of acquisition and cost basis are not reported to IRS on a tax-reporting document and then carry to Sch D so they are included in the overall capital gain/loss calculation on the return,

 

For additional information please refer to the following links for Form 8949 and Sch D.

IRS Instructions for Form 8949

 

IRS Instructions for Schedule D

anonymous8
Level 2

Do I have to file Form 8949 for cryptocurrency?

Thank you! This was helpful but didn't answer my question, or at least I'm no sure. I'd love to get a specific answer for this case:

 
I have capital gains from two sources, all short-term, ETrade (stocks) and Coinbase (crypto). ETrade sent me 1099-B, but Coinbase didn't send me any forms.
 
So, by looking at "IRS Instructions for Form 8949" (exception 1), I don't think I need 8949 for ETrade, because I received 1099-B. But.. my main question is: Do I need to file Form 8949 for my crypto trades? I have no more then 20 crypto trades in 2020. 
 
So here is what I think, please tell me if this is. correct: I don't need 8949 for ETrade. For ETrade I can just fill "1a" in Schedule D. But for Coinbase crypto trades, I must use 8949 and final number put into "3" of Schedule D. Then sum of these two in "7" of Schedule D. Can you confirm that this is correct?
Rick19744
Level 11

Do I have to file Form 8949 for cryptocurrency?

@gloriah5200 answered your question in her first sentence.

Yes, you must file form 8949.  This is the form that contains the details of each sale, which then gets summarized on Schedule D.

You must file form 8949 for both your ETrade and your cryptocurrency gains.

 

*A reminder that posts in a forum such as this do not constitute tax advice.*
anonymous8
Level 2

Do I have to file Form 8949 for cryptocurrency?

@Rick19744 are you sure? What about the "Exception 1" in the "2020 Instructions for Form 8949"? 

Exception 1. Form 8949 isn't required for certain transactions. You may be able to aggregate those transactions and report them directly on either line 1a (for short-term transactions) or line 8a (for long-term transactions) of Schedule D. This option applies only to transactions (other than sales of collectibles) for which:

• You received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and doesn't show any adjustments in box 1f or 1g;

 

I received 1099-B from ETrade

 

@gloriah5200 can you clarify?

Rick19744
Level 11

Do I have to file Form 8949 for cryptocurrency?

Your initial facts do not indicate that you qualified; just because you received a form 1099-B doesn't automatically preclude you from having to enter the details on form 8949.

If you qualify, based on the details in the form 8949 instructions, then "no" you do not need to include the ETrade details on form 8949; just on Schedule D.

 

*A reminder that posts in a forum such as this do not constitute tax advice.*
anonymous8
Level 2

Do I have to file Form 8949 for cryptocurrency?

What else do you need to know to tell if I qualify to not file 8949 for ETrade? I'm not sure if I have more information. Regular brokerage account, one sale in 2020, that's it.  Probably the most common way. Is it somewhere on my 1099?

 

Btw. But for crypto it's 100% clear - I must file 8949, correct?

Rick19744
Level 11

Do I have to file Form 8949 for cryptocurrency?

You answered your own question in your response when you copied the instructions.

If you have no adjustments on your ETrade form 8949, then you meet the exception.

Crypto - enter on form 8949.

*A reminder that posts in a forum such as this do not constitute tax advice.*
fanfare
Level 15

Do I have to file Form 8949 for cryptocurrency?

IRS requires details of all sell transactions, EXCEPT as noted above for Category A or D without adjustments.

 

If you did not get a 1099-B your category is C or F

There is no exception for these categories.

 

If you summarized an e-Trade 1099-B that is entirely Box A or D without adjustments, you don't mail that statement in to the IRS.

 

For anything else you summarized, you mail the details.

It is a simple enough rule.

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