Are there any specific forms or procedures for reporting capital losses on digital currency investments?
Sebastián ConstantinDec 26, 2021 · 3 years ago1 answers
What are the specific forms or procedures that need to be followed when reporting capital losses on investments in digital currency?
1 answers
- Dec 26, 2021 · 3 years agoWhen it comes to reporting capital losses on digital currency investments, it's important to follow the specific forms and procedures outlined by the IRS. The IRS Form 8949 is used to report capital gains and losses from investments, including digital currency. This form requires you to provide detailed information about each transaction, such as the date of acquisition, the date of sale, the cost basis, and the proceeds from the sale. Additionally, you may also need to fill out Form 1040 Schedule D to report your overall capital gains and losses for the year. It's crucial to keep accurate records of your digital currency transactions and seek guidance from a tax professional to ensure you are reporting your capital losses correctly.
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