TXF Import for Digital Assets causing hundreds of errors to review

[mhdutch]

Software is supposed to make life easier.  Cointracker prepares a TXF file to import into TurboTax.  After doing so, I have 500 errors to review.  I have to select Yes for 'Asset is Digital' is manual.  After doing so, another required field must be entered creating an additional 500 errors to review.  I must now enter Name of Digital Asset even though the Property Description was imported and states an amount of BTC for example.  When I enter BTC in the Name of Digital Asset field, it then overwrites the Property Description with the same value and then it wipes out the useful information within that field indicating the amount of BTC.  

I researched ways to correct the import file, but it appears there is nothing that can be done.  It appears TurboTax doesn't support a TXF file that has these additional fields.  

I hope I am wrong.  How do I import this data without having to clean up 1000 errors while also destroying information in the property description field.  

[mhdutch]

I have been on hold for hours with TurboTax.  No solution so far.  TXF appears to be an old file format that hasn't changed in years.  I don't understand how it is acceptable to state you support cryptocurrency when the software flat out doesn't work.  Seems Intuit hasn't even tested their software. 

I figured out a way to mark Yes for all Transactions by editing the main form as shown in the screenshot below.

But I still have the other problem where TurboTax requires me to enter 'Name of Digital Asset'.  When I do this, the application then overwrites the 'Property Description' with the same value I entered for Name of Digital Asset.  This is UNACCEPTABLE.  

[MarilynG1]

The best way to resolve this is to use the Summary Method for reporting your digital assets on your tax return. 

Here's How to Fix Multiple 'Needs Review' Transactions.

@mhdutch 

[mhdutch]

I'll create a 1099-DA then and use the summary.  Is that the correct path, enter my cointracker results that compiled many 1099-DAs and personal wallet transactions as 1099-DA in TurboTax... then mail in the 8949 as supporting detail? 

I was hoping to import so that I don't have to mail anything separately, but I suppose I'll have to...

[DianeW777]

Yes, you can use the summary method in a 1099-DA you create. The key is to report short term and long term holding summaries separately.  See the holding periods below. Use an acquired/purchase date to represent the correct holding period.  If they are all short term you can use one total for all. If not you will need a minimum of two entries (two 1099-DA forms).

The key to you are entering the required income on your tax return and keep your backup. You may have to mail Form 8949 and Form 8453.   How do I mail Form 8453? (review if alerted)

Holding Periods:

• Long term is a holding period of more than one year (one year plus one day) and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
• Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)

@mhdutch