Taxable Crypto

[Terry D EA]

Looking for other's opinions. The following is all taxable gain????? The coin base doc statement in the upper left hand corner says so. Just because it does not say USD, it is still taxable. correct?

 

[Lee B]

What would lead you to believe otherwise?

[Terry D EA]

The client statement that th esale wasn't for USD. But if it was other crypto, it is still a taxable event with either gain or loss as I understand it. Correct?

[joanmcq]

Yup, all taxable in good ol’ US dollars.

[Pacun]

Remember, like kind exchange only exists in real estate. All gains are taxable in your situation.

[Yardley CPA]

I entered one last night with over a thousand sale events.  Just entered the totals on Schedule D of the total purchase price and sales amount, labeled it as MC.  All good.  

[joanmcq]

I just got the gain/loss statement for a client.  Haven't looked at it yet.  Ugh.

[KimR]

14 hours ago, Yardley CPA said:

I entered one last night with over a thousand sale events.  Just entered the totals on Schedule D of the total purchase price and sales amount, labeled it as MC.  All good.  

You just summarized it and did t list each transaction? I just had someone drop off their statement with over 100 pages attached. I’m dreading it. 

[Pacun]

22 minutes ago, KimR said:

You just summarized it and did t list each transaction? I just had someone drop off their statement with over 100 pages attached. I’m dreading it. 

Kim, 

Please see topic "Huge Cons DIV" where others and I have listed how we do it. 

[Slippery Pencil]

46 minutes ago, KimR said:

You just summarized it and did t list each transaction?

Of course, just like the 8949 instructions say to do.  The 8949 has been out for a decade so this isn't new and I summarized Sch D entries for 15 years prior to that. 

[Yardley CPA]

21 hours ago, KimR said:

You just summarized it and did t list each transaction? I just had someone drop off their statement with over 100 pages attached. I’m dreading it. 

That's exactly what I did.  I entered the total proceeds and total cost of all the transactions on two lines, one for short-term and one for long-term.  Used code M and C.  Moved on to the next return. 

 

[Abby Normal]

43 minutes ago, Yardley CPA said:

Used code M and C

Is crypto still considered collectibles? I couldn't find anything definite on the IRS site, pubs, or instructions (as usual).

[Lee B]

Perhaps you're thinking of NFTs which may be considered a collectible.

[Yardley CPA]

On 4/2/2022 at 7:54 PM, Abby Normal said:

Is crypto still considered collectibles? I couldn't find anything definite on the IRS site, pubs, or instructions (as usual).

Not sure where the C came in.  M for sure though.  

[Abby Normal]

Back in the early days, the IRS said crypto would be considered collectibles, and I thought they dropped that, but when code C popped into this thread, I thought I'd ask if it still applied, because I haven't been using code C for crypto sales.

[Abby Normal]

2 hours ago, Yardley CPA said:

Not sure where the C came in.  M for sure though.  

Maybe you meant type C for short term with no 1099B.

[joanmcq]

I had this question earlier, asked on another board.  The consensus on collectibles was no.

[Pacun]

They could become collectibles if you frame them on the wall. As I stated on another post, I feel weak when it comes to crypto. 

Even NFTs are not going to be collectibles when some more regulations are drafted. There are L1 and L2 projects that will break the collectibles into pieces and they will not longer be non-fungible which is, currently, a nice distinction from the other cryptos.