How can I accurately fill out form 8949 for my cryptocurrency trades in 2021?

1 answers

• Dec 28, 2021 · 3 years ago
  Filling out form 8949 for cryptocurrency trades in 2021 can be a bit tricky, but don't worry, I've got your back! Here's what you need to do: 1. Gather all your cryptocurrency trade records, including the date, type of cryptocurrency, quantity, and purchase/sale price. 2. Calculate the cost basis for each trade. This is the original value of the cryptocurrency at the time of the trade. You can use different methods to calculate the cost basis, such as specific identification, average cost, or FIFO. 3. Determine the capital gain or loss for each trade by subtracting the cost basis from the sale price. 4. Transfer the information from your trade records to form 8949. Fill in the date, description, cost or other basis, and the amount of gain or loss for each trade. 5. Make sure to review all the information before submitting your tax return. If you're unsure about anything, consult a tax professional. You've got this! Happy tax filing!
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