What are the common mistakes to avoid when completing form 8949 for cryptocurrency transactions in 2019?

3 answers

• Dec 25, 2021 · 3 years ago
  One common mistake to avoid when completing form 8949 for cryptocurrency transactions is failing to report all transactions. It's important to accurately report every transaction, including purchases, sales, and exchanges. Failure to do so can result in penalties and potential audits by the IRS. Make sure to keep detailed records of all your cryptocurrency transactions to ensure accurate reporting on form 8949.
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• Dec 25, 2021 · 3 years ago
  Another mistake to avoid is not properly calculating the cost basis of your cryptocurrency holdings. The cost basis is the original value of the cryptocurrency when it was acquired. Failing to accurately calculate the cost basis can lead to incorrect reporting of capital gains or losses. It's important to keep track of the date and price at which you acquired each cryptocurrency asset to calculate the correct cost basis for form 8949.
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• Dec 25, 2021 · 3 years ago
  At BYDFi, we recommend using a reputable cryptocurrency tax software to help you accurately complete form 8949. These software tools can automatically import your transaction history from various exchanges, calculate your gains and losses, and generate the necessary forms for tax filing. They can also help you identify any potential mistakes or missing transactions. Using a tax software can save you time and ensure accurate reporting on form 8949.
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