Reporting cryptocurrency in Home and Business

[crosby1612]

Are you serious? I spent $90 on the Home and Business desktop version and there is NO GUIDANCE WHATSOEVER as far as entering or importing cryptocurrency transactions???  TOTAL FAIL.  Where in God's name do you enter crypto transactions in this program????  1040 specifically asks if you bought, sold, owned crypto and then there is literally no place to enter that information??  I'm sure the IRS is going to be thrilled with this.  ANY HELP AT ALL??????

[ThomasM125]

Follow these steps to enter your cryptocurrency investment sales in TurboTax:

While in the Federal section of TurboTax:

  1. Income and Expenses

  2. Investment Income

  3. Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)

Choose the category of investment you want to enter and follow the instructions to enter your investment sale.

[crosby1612]

There is NO option for crypto currency reporting in Home and Business desktop version!!!!  THIS NEEDS TO BE FIXED!!!!

[DawnC]

Crypto is reported as an investment sale in both the online and desktop versions.   The only difference between the 2 versions is that in the Online version, you can import your data from crypto exchanges or a CSV file.  In the desktop version, you can only import from a list of financial partners; you can't import from crypto exchanges or upload CSV files.   You can manually enter your transactions in either version, using the same entry location - Investment Income.    This section includes non-security investment sales like coins, collectibles, crypto, timber, land, or a second home? Here's how you enter those:

1. Open (continue) your return in TurboTax.
2. In the search box, search for investment sales then select the Jump to link in the search results.
3. Answer Yes to the question Did you sell any of these investments in 2021?
   • If you land on the investment sales summary screen , select Add More Sales.
4. Select Other then Continue.
5. On the next screen, select the type of sale you had (like land or crypto) and Continue.
6. Continue following the onscreen instructions to enter the sale.

If you hold Bitcoins or other cryptocurrencies as a capital asset, you must treat them as property for tax purposes. If you sold them for profit, you must report earnings regardless of whether or not you received a tax form.   Use the instructions above for Online and Desktop versions of TurboTax.  

The following sales and exchanges are reported in the Investment Income section:

• Sell it (like you would stock)
• Exchange it (swap one type of cryptocurrency for another)
• Spend it (use it as payment for goods and services)
• Convert it to US dollars (sell cryptocurrency to buy regular currency)

How do I report cryptocurrency as a capital gain?   Directions are the same for both Online and Desktop.   The ability to import from crypto exchanges and the ability to upload CSV files is the only difference.   The entry and reporting are the exact same procedure.  

[crosby1612]

Do you mean the "search" box that's on the top right of the screen with the magnifying glass?  Typing "investment sales" into that box does not give any result that has a Jump To link.  It's just a bunch of questions from the community that may or may not have been answered.

I'm getting super frustrated with this.  The 1040 specifically asks whether you owned, sold, bought, cryptocurrency, yet there is NO OBVIOUS WAY OF ENTERING CRYPTO TRANSACTIONS INTO TURBOTAX.

THIS IS FOR TURBOTAX HOME AND BUSINESS FOR TAX YEAR 2021.

WHY CAN'T I GET ANY HELP WITH THIS???

[DianeW777]

Cryptocurrency is considered and investment, the steps below will allow you to enter your transactions for these trades.

• In TurboTax Online you will find Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) as a selection under Investment Income
• In TurboTax Desktop you will enter Cryptocurrency as a Stock, Mutual Funds, Bonds, Other, under Investment Income

Be prepared with the following information: (be sure to aggregate short term and long term holding separately)

• Service name (examples: Coinbase)
• Asset name (examples: Bitcoin, Ethereum)
• Date of purchase
• Cost basis
• Date of sale
• Sale proceeds
• Associated costs to buy and/or sell

You can do a summary of long term and then short term combinations (long term holding is more than one year, short term holding is one year or less).  Make one entry for each. You can then send the worksheets or statement with Form 8949 after your return is accepted, attached to Form 8453.

• Sale date can be the last date a sale occurred or 12/31/2021
• Purchase date can be 'Various' 

If you are e-filing your tax return, then mail your statements (including Form 1099-B), along with Form 8453 to: 

Internal Revenue Service

Attn: Shipping and Receiving, 0254 

Receipt and Control Branch 

Austin, TX 73344-0254

If you need a blank Form 8453, you can download this pdf, enter your address information and check the box for Form 8949 (this form is really just a cover sheet).