What is the most preferred at correctly reporting the crypto taxes, .csv file containing crypto transactions or the actual Form 1099 B?

[GiseleD · Accepted solution]

The 1099-B makes it easier to report your crypto activity, but if you had other crypto activity that was not reported on a 1099-B, you will need to either enter it manually or import it through one of our partners. Here's how:

1. Open or continue your return.
2. Select Federal from the left menu, and Wages & Income from the menu near the top.
3. Scroll down and select Show more next to Investment Income.
4. Select Start or Revisit next to Cryptocurrency.
5. Follow the instructions and we'll calculate the gain or loss from the sale.

There's an upload limit on cryptocurrency transactions in TurboTax. If you have more than the limit, you’ll need a transaction aggregator. We’ll walk you through that in the cryptocurrency section. 

Visit the original post. 

[gabegssanchez89]

To Giselle,

Thanks for the reply. The reason I am asking this is the sole purpose of showing each transaction for the whole 2019 year. My 1099-B listing the crypto transactions have some date acquired classified as "Various". I am more than happy to use the Form 1099-B, but I need the exact amount that is viable to report on the Form 1040. So is it common and recommended to import the .csv file to get an exact amounts gained or lost? Thanks.

[GiseleD]

If your 1099-B is showing "various" for acquired dates, then I would strongly recommend getting all your transactions in .csv form or even working with a company to reconcile your crypto transactions before you import them into TurboTax. It sounds like the "various" entries in your 1099-B might relate to crypto purchased prior to 2019. However, the issuer of the 1099-B does not know the acquisition date because you likely transferred the crypto to the issuer from another exchange instead of buying it right from the issuer. Frequent coin movements are common practice in the crypto space, as I'm sure you are aware.

Reporting the correct dates of acquisition for each crypto traded is the difference between the preferential long-term capital gains tax rates (asset held over one year) and unfavorable short-term capital gains rates (asset held less than one year). 

@gabegssanchez89

[gabegssanchez89]

To Gisile,

I appreciate your opinion on this matter.

[Jerrybooth]

I have much more than the allowed number of crypto transactions to import into turbotax. 

If I'm understanding your response/instructions here, I need to report my cap gains under the same area as stocks etc?

When I reach the Federal Review on my return, turbotax is demanding as acquisition date and a sell date. My transactions were many multiple dates throughout the year.

How do I enter this correctly?

[GiseleD]

You can only enter 50 transactions manually, or you can import up to 2251 transactions. If you have more than that to report, you can use a private accountant to reconcile your crypto transactions and aggregate them, or you can reconcile them on your own with a transaction aggregator. There are many services online that can help you aggregate your transactions and help you calculate your gains and losses.

When you are ready, you will enter them in the Cryptocurrency section in TurboTax. If you have a separate 1099-B for your crypto, you can enter that in the Stocks, Mutual Funds, Bonds, Other section.

Regarding the error message you are receiving, it sounds like you tried to aggregate everything on your own into one transaction. Unfortunately, you can't do that. The acquisition and sell dates must be identified. A professional aggregator will do this for every transaction, and it will then calculate your overall short- and long-term gain and loss. 

@Jerrybooth

[GiseleD]

You are very welcome!

@gabegssanchez89

[fanfare]

IRS requires all sell details to be supplied on Form 8949,
or on your own forms (e.g. consolidated 1099-B or spreadsheet) which have the same information and in the same manner as Form 8949.
Either way, if you choose to summarize, you have to mail the transaction details to the IRS within three business days of IRS accepting your tax return.
Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary. TurboTax won't ask you about wash sales if you don't check the box.

This includes crypto transactions, which you are reporting.

This year there is also a box to check that you have crypto transactions.
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As an active investor, be aware that your category Box A sales without adjustments do not require Form 8949, so there is no reason to import those transactions.
Instead use the "enter a summary" option to put your numbers on Schedule D Line 1a or Line 8a.

The actual date is not important, thus various is a perfectly acceptable entry.

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if your 1099-B doesn't show category A or D, then you can make the mail-in election.

[Jerrybooth]

Thanks for the reply, 

My CSV file from CoinTracking has 2648 transactions in it. This many transactions (over 2251) eliminates CSV import.

CoinTracking.info offers Turbotax (TXF) files. Using TurboTax Self Employed I'm not able to import them and the CSV file is too big. Suggestions?

The help files in the online turbotax version says: "You can only import .TXF files into TurboTax, not .csv files and you can only import .TXF files into DESKTOP versions of TurboTax."

Do I need to purchase a desktop version?

Since I do not have a 1099-B from mulltuple exchanges used over 2019, does that mean I can't use the Stocks, Mutual Funds, Bonds, Other section?

[fanfare]

print the csv file and you can mail it in to the IRS within three business days of IRS accepting your tax return.

put a heading on it and label the columns to correspond to Form 8949.

IRS requires details to be listed on Form 8949,
or on your own forms (e.g. spreadsheets) which have the same information and in the same manner as Form 8949.

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This procedure works (used to work) for the CD/Download version, Online should be the same or similar.

After answering YES to I have a 1099-B, click on the "I'll type it in myself" option
On the next screen, name your brokerage.
on the next screen, check ALL the boxes for which your 1099-B has transactions assigned to that Box.You'll have to enter the subtotals for each box category.

In your case you're using Category C/F.
THEN click the option "I have many sales and would rather mail them"
After you enter the subtotals, follow the "mailing instructions" for how to file correctly.

Your return will still have Forms 8949 to e-File but they will have subtotals instead of each individual transaction.

[Jerrybooth]

Should I buy the CD or can I download a "DESKTOP" version?

[fanfare]

The desktop version is called "CD/Download", after you buy it, you can download and install it.

[Jerrybooth]

To Clarify, I DO NOT have a 1099-B to enter into Turbotax Self Employed  Online Version

I can produce a CSV, 8949, or Excel of all my 2019 trades and mail it

[fanfare]

When you don't have a 1099-B you proceed as if you do have it.

Select Sales Categories C (and F if you have any Long Term).