What are the common mistakes to avoid when completing IRS Form 8949 for cryptocurrency transactions in 2014?

3 answers

• Dec 25, 2021 · 3 years ago
  One common mistake to avoid when completing IRS Form 8949 for cryptocurrency transactions in 2014 is failing to report all transactions. It's important to include every buy, sell, and exchange of cryptocurrencies during the year. Even if you think a transaction is small or insignificant, it still needs to be reported. Failing to report all transactions can lead to penalties and potential audits from the IRS. Make sure to keep accurate records of all your cryptocurrency transactions to ensure you don't miss anything when filling out the form.
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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 you acquired it. This is important for determining the capital gains or losses when you sell or exchange the cryptocurrency. Failing to accurately calculate the cost basis can result in incorrect reporting and potentially higher tax liabilities. It's recommended to use a reliable cryptocurrency tax software or consult with a tax professional to ensure accurate calculations.
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• Dec 25, 2021 · 3 years ago
  When completing IRS Form 8949 for cryptocurrency transactions in 2014, it's important to double-check all the information entered on the form. Mistakes such as typos, incorrect dates, or wrong transaction amounts can lead to discrepancies and potential issues with the IRS. Take the time to review the form before submitting it to ensure accuracy. If you're unsure about any aspect of the form, consider seeking guidance from a tax professional or using tax software specifically designed for cryptocurrency transactions.
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