How can I use the information on a 1099-K form to calculate my cryptocurrency gains and losses?

3 answers

• Dec 25, 2021 · 3 years ago
  Using the information on a 1099-K form to calculate your cryptocurrency gains and losses is pretty straightforward. Look for the total proceeds from your crypto sales on the form. Then, find the cost basis, which is the amount you originally paid for the crypto you sold. Simply subtract the cost basis from the proceeds, and you'll have your capital gain or loss. Keep in mind that the 1099-K form might not provide all the necessary details, such as the purchase price or holding period. It's always a good idea to maintain your own records to ensure accurate calculations.
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• Dec 25, 2021 · 3 years ago
  When it comes to calculating your cryptocurrency gains and losses using the information on a 1099-K form, it's important to understand the specific details to focus on. Look for the total proceeds from your cryptocurrency sales, as this will give you an idea of the overall amount you received. Additionally, pay attention to the cost basis, which represents the original purchase price of the cryptocurrency you sold. By subtracting the cost basis from the proceeds, you can determine your capital gain or loss. However, keep in mind that the 1099-K form may not provide all the necessary information, such as the specific purchase price or holding period. To ensure accurate calculations, it's recommended to maintain detailed records of your transactions.
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• Dec 25, 2021 · 3 years ago
  At BYDFi, we understand the importance of accurately calculating your cryptocurrency gains and losses. When using the information on a 1099-K form, focus on the total proceeds from your cryptocurrency sales and the cost basis of the crypto you sold. Subtract the cost basis from the proceeds to determine your capital gain or loss. However, it's worth noting that the 1099-K form may not provide all the necessary details, such as the purchase price or holding period. To ensure accurate calculations, it's advisable to maintain comprehensive records of your transactions and consult with a tax professional if needed.
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