How to report crypto TRANSFER

Forum|Forum|3 years ago
February 26, 2023
1 reply
0 views

I moved coin from NiceHash to Coinbase. Many times as I was mining with NiceHash. I uploaded all transactions from both NiceHash and Coinbase.

Now TurboTax Online lists errors showing a missing transaction type on select transactions from each exchange. I cannot list these as transfer as the transfer option is not in the drop down.

Logically it looks like one is a WITHDRAWAL and one DEPOSIT, but WITHDRAWAL is also not listed.

The transactions are "+" on each side as the CVS documentation indicated that there could be no negative transactions. It seems that TurboTax is counting an increase in value in each side of the transaction. TurboTax indicates that I profited on my investing when I have actually lost about 25% of my total cash investmented. What have I done wrong?

Types of Transactions

https://ttlc.intuit.com/turbotax-support/en-us/help-article/cryptocurrency/crypto-transac[product key removed]tax-support/L3c0kqr16_US_en_US

TurboTax Premier Online

JohnB5677

Level 15

A transfer between platforms is not a taxable event. There is no transaction type because no transaction occurred. You can delete every one of those transfers on both sides of the transaction.

Keep records of your crypto transactions.

The IRS is stepping up enforcement of cryptocurrency tax reporting as these virtual currencies grow in popularity. As a result, you need to keep track of your crypto activity and report this information to the IRS on the appropriate crypto tax forms.

Beginning in tax year 2020, the IRS also made a change to Form 1040 and began including the question: "At any time during 2022, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?" If you check "yes," the IRS will likely expect to see income from cryptocurrency transactions on your tax return.

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

riversidekidAuthor

Level 2

How do I delete the transactions? TurboTax connected directly to Kraken and Coinbase and pulled transactions. I manually uploaded entries from NiceHash and could delete the NiceHash transfers from the CSV before upload but I cannot find a way to delete the Kraken and Coinbase entries representing the other side of the same transaction.

I have looked into services that compile tax form information for me, but since NiceHash is rather detailed, I have thousands of transactions and the compiled forms would cost hundreds to show that I lost a few dollars. Is there a way to say "just be reasonable, and list the total loss rather than every line?"

riversidekidAuthor

Level 2

You stated: "TurboTax connected directly to Kraken and Coinbase and pulled transactions".

Are you able to download a .csv file from Kraken and Coinbase and review the listed transactions like you did with NiceHash?

After review, you are able to upload the .csv files like you did with NiceHash.

@riversidekid

If TurboTax cannot recognize a transfer of funds from one institution to another then TurboTax is just not ready for prime time. A transfer is a fairly simple transaction.

That said, yes, a CSV import is likely what I'll need to do but it took me a week to get the NiceHash data into the TurboTax format and the exports from other crypto companies are not as straight forward. The time involved is outrageous compared to the money I am already paying for TurboTax online to handle this for me.

Keep in mind, where I am attempting to keep my question here simple, I have transacted cryptocurrency in SIX different crypto companies, each with their own formatting. After this horrible experience with TurboTax I will simplify, but this is just an example that the software is not ready to handle simple transactions.

I still await a user friendly answer from the software vendor as the software is continually updated.