Do I need to print and mail my 1099-B forms for crytpocurrency trades?

[doug145xy]

I am filing an amended return 1040X for my 2019 Tax return, as I did not report my 2019 cryptocurrency activity in my original return.  I modified my return and I also used Cryptotrader.tax to generate my 1099-B forms for my short term and long term capital gains, and my Form 8949.  I will have to mail in my 1040X form with the supporting documents.  My question is: Can I just mail in a Schedule D, along with the 8949 form without the 1099-B forms?  If I mail all my 1099-B statements, I would have to print and mail 40 more pages!  I don't feel like sending that much and I suspect the poor workers at the IRS may not care to see that either.

[Scorpion1]

No, if the summary details are already in, just print basics with your 1040X that you have already mentioned and don't forget to sign the Return.

[doug145xy]

Scorpion, I am happy about your answer here.  I asked someone about this at Cryptotrader.tax and they seem to think I had to send all of my 1099-B papers.  When I downloaded my Form 8949 from their site they actually put 'see attached statement' in the a column for my Short Term Gains, along with the Gain and Loss totals.  So I can erase the 'see attached statement' and just put cryptotrader.tax there instead for the IRS to reference?  I say that because when I filed my return for 2020 and downloaded my 2020 Form 8949 from Cryptotrader.tax, they just had 'cryptotrader.tax' and 'Various' for Date Acquired column.   But I e-filed my 2020 return.

[doug145xy]

Someone at H & R Block also told me all the 1099-B statements did not have to be sent.

[DawnC]

No, you do not need to include your 1099-Bs, the IRS already has them.   Include Form 8949 and Schedule D when you mail the return.   However, if you entered a summary of your transactions instead of each individual transaction, you have to include the broker's statements to include the details of certain transactions.    

When you use the summary method, TurboTax only produces a Form 8949 with the summary totals that you entered, not the individual transactions, so the Form 8949 that is included in your return is NOT sufficient for this purpose.  (Though, you can include it with the mailing as a reference).  

1099-Bs do not always have complete information.  If there were sales for which basis was not reported on the 1099-B, (box B, C, E, or F is checked on Form 8949), then you have to either enter each transaction individually on your tax return or send the IRS a statement showing all the information that would be on Form 8949 for the individual transactions. 

Any sales summaries that include only Box A or Box D sales, and which have no adjustments to gain/loss, do not need to be included on a statement mailed to the IRS. 

[doug145xy]

I had to buy 4 years of reports on Cryptotrader.tax.  I see on my reports that I have a number of actions where my Cost Basis amount was $0.00. Why would that be?? I paid for every coin that I traded to, either by trading from another coin or buying with cash.  I suspect that incorrectly increases the amount of Capital Gains for me.  Is it possible to correctly have zero in my Cost Basis for a transaction?  Doug

[phildonnia]

You do not need to send your 1099-B with your amended return.  Most likely, the IRS already has a copy of your 1099-B, as the broker will send a copy to the IRS whenever they send a copy to you.

If the IRS wants to see it, they will ask for it; it's not a big deal.  In any case, your amended return is complete and valid without it.

[phildonnia]

There are some situations where your cost basis would be zero, even if you had paid in.  A typical example is when a stock or fund is liquidated, and the proceeds are sent as a "nondividend distribution".  In this case, the basis is zero, and the proceeds to you are the excess over your cost basis.

If you think the cost is wrong.  Contact the broker, and ask if there's a mistake, and get an explanation.

If you still think it's wrong, make absolutely sure you are correct.  Then you can correct the cost by putting an adjustment in columns f/g of Form 8949, with the code "B".  While it's unlikely that the IRS will question it, you should be prepared to prove that the adjustment is correct and the 1099-B is wrong.

[doug145xy]

This is not for stocks, but for cryptocurrency trading.  There is no broker, just an exchange.  For every coin I sold, I had paid for it at some earlier date, so I do not quite understand the zero for Cost Basis for some of my sell transactions.

[doug145xy]

Please, anyone, let me know why I would ever see a Cost Basis of zero on my 1099-B when I try to sell a crypto coin, when I had PAID for it earlier.

[Cynthiad66]

The form 1099B is notorious for not showing Cost Basis.  You can manually enter the basis for the crypto.

The 1099-B should list the basis.

Cost or adjusted Basis means what your beginning value was. 

If you purchased the crypto, it would be what you paid for it (COST) 

If you inherited it, it would be the value of the crypto on the day you inherited it. 

There are times when the broker doesn't have records of that, in which case you would need to provide that information. 

[doug145xy]

I tried to put in what I paid in BTC, but very difficult to track that down for each individual transaction.

[JohnB5677]

Although brokers now maintain records of the Cost Basis of investments and stocks.  It is still your individual responsibility to maintain those records.

This Bitcoin exchange rate App may help you.

US-Dollar to Bitcoin Conversion | USD to BTC Exchange Rate Calculator | Markets Insider (businessins...

@doug145xy

[doug145xy]

The link to the rate calculator is HELPFUL to me, since the base date can be changed.  THANKS.  I will go thru all my deposits manually from USD.

I have one other question: How can I quickly convert a datetime value in this format: 

2015-08-04T01:45:36+00:00

 To this format: 

mm/dd/yyyy H:SS

Is there a feature in Excel that will let me convert an entire

column?  The Excel sheet I got from LocalBitcoins has the first format, but CryptoTrader.tax requires the second date format in order for me to import the file.

Doug

[JohnB5677]

To make this format compatible to put into TurboTax you would have to "parse" the original data in Excel.

You would go from 2015-08-04T01:45:36+00:00, to 2015 08 04 and then re-arrange the format in another cell.

You would then be able to import your data.