1099-DA - 0 units line and various purchase date line - how to enter?

[supertom]

Hi,

I'm facing two questions when entering a 1099-DA.

1) On one line, the units are 0.00000563 which get rounds to 0, and then TurboTax tells me must be greater than 0.  The proceeds and cost basis on this line are 0.  How do I report this line (or do I leave it off since there is no taxable gain?)

2) On another line, the purchase date is listed as "Various" but TurboTax wants a valid date both in the EasyStep mode and the Form mode.  Do I just leave this field blank for this line?

Thanks,

Tom

[MaxA1]

Answers to your questions:

1. Enter "1", and correct, if you have zero proceeds and 0 cash.  you can disregard entering the transaction on your return.
2.  Enter 01/01/XX for purchase date and 12/31/25 for date of sale.  The year for the purchase date will be the year you purchased the stock.
   • Note that the year of the purchase date is important because it'll determine whether the transaction was a short-term or long-term sale.

Here's a link that gives more information on how to enter digital asset transactions in TurboTax:

• How do I import my digital asset transactions into TurboTax?
• How can I fix a digital asset transaction error?

[supertom]

Replying to MaxA1:

1. Regarding the units, if I go through the Needs Review to correct it, I'm stuck at the same problem of the 0 units.  How do I correct it?

2. To clarify, are you saying with 0 proceeds, I can leave it off the return?

3. Regarding the date, it's the purchase date that's listed as Various.  If purchased over multiple years, how do I enter the purchase date?  It's already categorized as long-term on the 1099-DA and in the selection box in TurboTax.

[DianeW777]

No, you should not leave it off of your tax return if you paid for the digital currency and it is now worthless. The cost would reduce your other taxable income.

When I test your scenario I entered the following:

1. Number of units: .0000000567
2. I selected 'Something other than a date' and then selected 'Various'
3. Sales date: 12/31/2025
4. Proceeds: 0 (entered the zero)
5. On the screen 'Let us know if any of these situations apply to this sale' I selected 'None of these apply'

When I land back on the 'Review Sales' screen the 'Needs Review' is no longer there.

Please update if you do not obtain your desired results.

@supertom 

[supertom]

Thanks @DianeW777 .

1) The units are truncating.

2) I don't have a "Something other than a date" option.

See below image.

[DianeW777 · Accepted solution]

My advice is to enter a date of purchase that represents the holding period necessary for the end results, either long or short term. See the details below and then just select any date that will show the correct holding period.

 Holding Periods:

• Long term is a holding period of more than one year (one year plus one day) and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
• Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)

@supertom 

[supertom]

Hi @DianeW777 ,

For the asset where it rounds down to 0 units (and has 0 proceeds), should I leave that one off the return since I can't save the 0 units?

For the asset where I have various purchase dates, I can definitely enter the first purchase date.  There was no purchase of that asset at that exchange last year, so it's all long-term.

Thanks so much,

Tom

[DianeW777]

First, make sure to use the 'delete' key when you are in that field, then try entering just any number (1, 2, 3 etc). It really doesn't matter what number and you have the documentation in your tax file if you ever need it.

@supertom