Do I need to keep any specific records when reporting losses on crypto?

3 answers

• Dec 24, 2021 · 3 years ago
  Yes, it is important to keep specific records when reporting losses on cryptocurrency. The IRS requires you to maintain accurate records of your transactions, including the date and time of each transaction, the amount of cryptocurrency involved, the fair market value of the cryptocurrency at the time of the transaction, and any associated fees. These records will help you calculate your gains or losses accurately and ensure compliance with tax regulations. It's a good practice to keep a detailed record of all your cryptocurrency transactions to avoid any potential issues during tax reporting.
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• Dec 24, 2021 · 3 years ago
  Absolutely! When reporting losses on cryptocurrency, it is crucial to keep detailed records. This includes information such as the date and time of each transaction, the type and amount of cryptocurrency involved, the exchange or platform used, and any fees incurred. These records will not only help you accurately calculate your losses but also serve as evidence in case of an audit. So, make sure to keep track of all your crypto transactions and store the records in a safe place for future reference.
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• Dec 24, 2021 · 3 years ago
  Yes, you should definitely keep specific records when reporting losses on cryptocurrency. As an expert in the field, I recommend maintaining a record of each transaction, including the date, type of cryptocurrency, amount, and the exchange or wallet used. Additionally, it's a good idea to keep track of any fees associated with the transactions. By keeping detailed records, you can easily calculate your losses and provide accurate information to tax authorities if required. Remember, proper record-keeping is essential for staying compliant and avoiding any potential issues.
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