Crypto Currency

Forum|Forum|4 years ago
January 7, 2022
2 replies
19 views

Can you write off losses in crypto currency? If so, on what tax form are the losses or gains reported? Thank you.

Not A Product Question

Best answer by TomK2023

According to IRS Notice 2014-21, the IRS considers cryptocurrency to be property, and capital gains and losses need to be reported on Schedule D and Form 8949 if necessary.

Entering Cryptocurrency transactions into TurboTax:

Open your return.
Search for cryptocurrency in the search box (upper-right corner).
Click on Jump to cryptocurrency.
Enter your transactions..

Entering Cryptocurrency transactions into TurboTax:

Open your return.
Click on Federal tab.
Click on Income & Expenses.
Under Your income and expenses¸ Scroll down to Cryptocurrency, and Click on the Start/Edit/Add.

[Edited 1/07/2022 | 9:58am PST}

@fasteddie577

rjs

Level 15

You report sales of cryptocurrency the same as if it were stocks. If you have a net loss you will be able to claim it just like a loss on stocks.

TomK2023Answer

Level 15

According to IRS Notice 2014-21, the IRS considers cryptocurrency to be property, and capital gains and losses need to be reported on Schedule D and Form 8949 if necessary.

Entering Cryptocurrency transactions into TurboTax:

Open your return.
Search for cryptocurrency in the search box (upper-right corner).
Click on Jump to cryptocurrency.
Enter your transactions..

Entering Cryptocurrency transactions into TurboTax:

Open your return.
Click on Federal tab.
Click on Income & Expenses.
Under Your income and expenses¸ Scroll down to Cryptocurrency, and Click on the Start/Edit/Add.

[Edited 1/07/2022 | 9:58am PST}

@fasteddie577

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TiredOfCRAP

Level 3

Tom....elaborate please as I can NOT find anything in regards to cryptocurrency entry in my copy of TurboTax 2021 living on my windows PC as of today, jan 17 2022. Is there not supposed to be a question directly on the front area of the 1040 to indicate if crypto was traded? I can't find it...I'm old tho.

TiredOfCRAP

Level 3

Called TurboTax Support , have case #, support indicates that basically, they don't know why the desktop version does not have any mention whatsoever of cryptocurrency. Even in help there is no mention of crypto. We did screen share and he was quite thorough in looking for anything to do with cryptocurrency. His answer to my issue was to send me this link:
https://ttlc.intuit.com/community/cryptocurrency/help/how-do-i-import-my-cryptocurrency-transactions-into-turbotax/00/2401540

Perhaps an update is forthcoming to cover crypto. I do have Premier for Windows and using Windows 10, all up to date.