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Author: Admin | 2025-04-28
To the IRS. Luckily, many crypto exchanges provide transaction reports that include all buy, sell and exchange transactions that occur in your account.If all of your crypto transactions occur on one exchange, then, gathering the information you need to report cryptocurrency on your tax return should be easy. If you have crypto transactions across several exchanges, crypto wallets or crypto credit cards, however, things may get more complicated. You’ll need to get a report from each place a transaction occurred or track the transactions yourself.To simplify this process, crypto-focused tax software programs like CoinTracker or TokenTax allow you to input all of your crypto transactions across all the exchanges you use and generate a cost-basis report to assist with tax reporting. (These programs may charge a fee for their services.)After you’ve collected all of your crypto transactions, you must report them on IRS Form 8949, Sales and Other Dispositions of Capital Assets. This form is divided into two sections: short term (for crypto held one year or less) and long term (for crypto held longer than one year).Take your total short- and long-term capital gains and list them on Schedule D, Capital Gains and Losses.Helping You Make Smart Tax DecisionsGet Forbes Advisor’s ratings of the best overall tax software, as well as the best for self-employed individuals and small business owners. Get all the resources you need to help you through the 2022-2023 tax filing season.Thanks & Welcome to the Forbes Advisor Community!By providing my email I agree to receive Forbes Advisor promotions, offers and additional Forbes Marketplace services. Please see our Privacy Policy for more information and details on how to opt out. Looking For A Financial Advisor? Get In Touch With A Pre-screened Financial Advisor In 3 Minutes
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