How can I report cryptocurrencies with no cost basis on 1099 b for tax purposes?

3 answers

• Dec 25, 2021 · 3 years ago
  To accurately report your cryptocurrencies on your 1099 b without the cost basis information, you can use the FIFO (First-In, First-Out) method. This method assumes that the first cryptocurrency you acquired is the first one you sold. You can calculate the cost basis by using the price of the cryptocurrency at the time of acquisition. Make sure to keep detailed records of your transactions and consult with a tax professional for further guidance.
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• Dec 25, 2021 · 3 years ago
  Reporting cryptocurrencies without the cost basis information can be tricky. One approach is to estimate the cost basis based on the fair market value at the time of acquisition. However, this may not be accurate and could result in potential discrepancies. It's recommended to keep track of your transactions and seek professional advice to ensure accurate reporting and compliance with tax regulations.
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• Dec 25, 2021 · 3 years ago
  As an expert at BYDFi, I would recommend using a tax software specifically designed for cryptocurrency tax reporting. These software solutions can help you import your transaction history and calculate the cost basis automatically. They also provide guidance on how to accurately report your cryptocurrencies on your 1099 b. Make sure to choose a reputable and reliable tax software to ensure accurate reporting and compliance with tax regulations.
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