Quote from: figmentofmyass on October 13, 2018, 12:15:02 AM

Quote from: MysticMelody on October 12, 2018, 11:42:23 PM

Hi guys , So....... question for you . Hypothetical question . If you buy 1 eth then immediately exchange it to another crypto ( lets say within 30 min) therefore basically no gains or loss => hence no capital gain. Do you still need to report on your tax return ?

technically you're supposed to, since cryptocurrency exchanges don't send 1099-Bs to the IRS. lines 1a and 8a are for transactions where the basis was already reported to the IRS. otherwise, you're supposed to comprehensively list your capital assets traded on form 8949.

Quote from: MysticMelody on October 12, 2018, 11:42:23 PM

I know exchange crypto to crypto considered to be taxable even , but if this event did not produce any gains or loses are we still obligated to report it? If yes it will be schedule D of 1040 form. Any other forms? Do we need to provide files from exchange or it is not necessary ?

the exchanges won't provide you with anything official for the IRS---it's all on the honor system for now.

i'm 99% sure you need to file form 8949 if you're reporting gains from crypto trading: https://www.irs.gov/pub/irs-pdf/f8949.pdf

that's what my tax advisor had me do. you might consider a one-time consultation with a tax advisor just to make sure you're doing everything correctly. good luck!

Yeah this is close to accurate. The reality is many exchanges do not hold the info.

Now Coinbase holds the info and I did report more then 8000 in cap gains from coin base. I generated a 17 page report from Coinbase data base. I attached it to form 8949