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monsoncody
New Member

Is TurboTax even a possibility to consider if I have a significant number of cryptocurrency trades and gains, both in main coins but also altcoins on various exchanges?

Say I've traded coins from BTC to XRP. I bought some BTC for the trade on one exchange, but some of the BTC I acquired through a sell of ETH I bought with USD on a different exchange. I sold half of the XRP for a gain. What is my cost basis and how in the world do I calculate that? Should I hire a CPA, or is there a conceivable way I could have Turbotax help me?
1 Best answer

Accepted Solutions
jtax
Level 9

Is TurboTax even a possibility to consider if I have a significant number of cryptocurrency trades and gains, both in main coins but also altcoins on various exchanges?

Turbotax will not calculate your basis. It will help you report your basis, but you have to know what your basis is (or have it downloaded from a partner brokerage.)

You would calculate basis for cryptocurrency just as you would for any other capital asset. Your basis is your purchase cost. If you sell (or trade) some of your asset you use up a proportional amount of your basis. You have to keep track of that. It is more complicated if there are multiple purchases followed by partial sales.

Indeed you might want to seek out an CPA, EA (enrolled agent), or tax attorney.

First you might review this IRS publication

https://www.irs.gov/publications/p551

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3 Replies
fanfare
Level 15

Is TurboTax even a possibility to consider if I have a significant number of cryptocurrency trades and gains, both in main coins but also altcoins on various exchanges?

How many transactions? If just a few, you can do it yourself.
jtax
Level 9

Is TurboTax even a possibility to consider if I have a significant number of cryptocurrency trades and gains, both in main coins but also altcoins on various exchanges?

Turbotax will not calculate your basis. It will help you report your basis, but you have to know what your basis is (or have it downloaded from a partner brokerage.)

You would calculate basis for cryptocurrency just as you would for any other capital asset. Your basis is your purchase cost. If you sell (or trade) some of your asset you use up a proportional amount of your basis. You have to keep track of that. It is more complicated if there are multiple purchases followed by partial sales.

Indeed you might want to seek out an CPA, EA (enrolled agent), or tax attorney.

First you might review this IRS publication

https://www.irs.gov/publications/p551

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
fanfare
Level 15

Is TurboTax even a possibility to consider if I have a significant number of cryptocurrency trades and gains, both in main coins but also altcoins on various exchanges?

Put your buys and sells in a program like Quicken, which can be imported by TurboTax.

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