How to enter cryptocurrency on the downloaded version???

[svacharya]

Ok I had a hard time entering crypto currency transactions this time in TT desktop. If your crypto account transactions can be imported directly into TT desktop (e.g Coinbase) then it’s great. Else the only option I found is to use CryptoTrader.tax that you can use to import your transactions and then export it to TurboTax desktop.

https://cryptotrader.tax

[JamesG1]

Here are two possibilities.

If you are provided a tax reporting statement, you may be able to enter a summary for each sales category such as box A Short term covered or box D Long term covered.

Or

You may be able to convert your .csv file to a .txt file and upload it into TurboTax Desktop Premier version.  Follow these steps: 

• Create a .csv file with all transactions using the format shown at Easytxf.
• Used Easytxf to convert the .csv file into .txf file.
• Import .txf file into Turbotax Desktop:    File / Import / From Accounting Software / Other Financial Software (TXF) file /  Continue / Choose a File to Import / Import now.
• A 1099-B with all Crypto transactions is now created.   This entry can now be edited to include the account details.  Each transaction can be edited as well.

@svacharya

[svacharya]

Thanks so much James. Will try this next time. But considering how complex crypto transaction csv files are, I would prefer if TT Desktop integrates and imports directly from crypto tax websites (Similar to Gainskeeper that I use) . 

[JimBobJu]

if I got a 1099 B for crypto, do I still have to mail documentation in? I want to file electronically

[JimBobJu]

but I'm reading you have to mail in a copy of your transactions if you enter it the same way as stocks (and no form 1099B)

[svacharya]

If you report just the 1099-B summary in Turbo Tax and not the individual transactions, then you have to mail all the transactions to IRS.  See below link,

https://ttlc.intuit.com/community/retirement/discussion/do-i-need-to-mail-my-1099-b-statements/00/58...

[JimBobJu]

Please explain this though:

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.

I have straight long and short term, no adjustments for wash sale or anything. This applies to stocks and crypto since they the same thing right?

[svacharya]

I have to agree with you. No reporting of form 8949 is needed if these are straight transactions with no adjustments needed. From the IRS website 

https://www.irs.gov/instructions/i8949

Yes crypto and stock transactions  are considered same
—-

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;

- The Ordinary box in box 2 isn’t checked;

- You don't need to make any adjustments to the basis or type of gain (or loss) reported on Form 1099-B (or substitute statement), or to your gain (or loss); and

- You aren’t electing to defer income due to an investment in a QOF and aren’t terminating deferral from an investment in a QOF.
 

If you choose to report these transactions directly on Schedule D, you don't need to include them on Form 8949 and don't need to attach a statement. For more information, see the Schedule D instructions.

If you qualify to use Exception 1 and also qualify to use Exception 2, you can use both. Report the transactions that qualify for Exception 1 directly on either line 1a or 8a of Schedule D, whichever applies. Report the rest of your transactions as explained in Exception 2.

—-

[Tax_Confused1]

Hi, if I choose to manually enter my transactions can someone help me how I would enter it given the following scenario?

• Made a buy order on 1/1/21 for 5 coins
• Made a sell order on 1/5/21 for 5 coins

When I look at the transactions report from coinbase, it shows the purchase for 5 coins as multiple transactions (e.g. 8 transactions). Similarly the sell order for 5 coins also show up as multiple transactions (e.g. 7 transactions). Does it mean that when I enter it in turbotax, I need to specify 7 different transactions? Or can I just enter it a sell for 5 coins as 1 order? I also don't want to mail anything in after I e-file.

[JohnB5677]

These are clearly Short Term transactions.  If you have the CD/Download version of TurboTax you can type a "V" in both the purchase and sale positions and it will type Various.  

In the Online Version, you can select Various for the purchase date by clicking. Something other than a date

However, you can not do this for the sale date.

If you click Learn More, it will say

• Enter the actual sale date (when the sale took place), not the settlement date (when the shares were delivered). Refer to Box 1c, Form 1099-B.
• If you sold the securities on more than one date, you must enter each sale separately.

[fanfare]

Various is permitted only in the Date Acquired field, when you sold some bunches all on the same day.

[m-doom]

Maybe I'm over thinking this, but after reading this entire thread, it seems that creating a csv, converting to TXF, and importing into the desktop software is the way to go.

However, I'm getting stumped on how to prepare my CSV file for the format shown at easytxf.com

All of my transactions are around mining and staked rewards.  Which, as of now, I know both events are taxable events, and value at that time is what I report.  They'll become my future cost-basis if/when I sell.

I'm just not sure how to format all my transactions for mining/staking to align with this though.

Symbol, Quantity, Opening Date, Opening Net Amount, Closing Date, Closing Net Amount.

Any guidance is appreciated.  I have all my info, (transactions, dates, value of coin on those dates, etc.)  Just stumped on how to proceed.

[JohnB5677]

If these are not sales as I think you suggest, we can make it much easier.

If you earn cryptocurrency by mining, it counts as part of your regular taxable income. You owe tax on the entire fair market value of the crypto on the day you received it, at your regular income tax rate.

Crypto mining can be taxed as either a Hobby or a Business

To post as a Hobby:
With your return open, go to the Federal
1. Wages & Income
2. Less Common Income
3. next to Miscellaneous Income, 1099-A, 1099-C
4. Select Other Income not already reported on Form W-2 or 1099
6. Continue through the interview

To Post as a Business:
If you have a business, it can be entered directly into the business income
section of the return.

Staking will generate passive income. This is like getting interested in a checking account.
Go to
1. Federal
2. Wages & Income
3. Less Common Income
4. next to Miscellaneous Income, 1099-A, 1099-C
5. Select Other Reportable Income
6. Answer Yes on Any Other Taxable Income? Screen
7. Continue through the interview

[randmperson]

is there a way to import form 8949 in the same fashion? 

[randmperson]

Also, the fact that turbotax removes decimals is absolutely insane. 1.9 BTC is not the same as 1. lol