If you have a cryptocurrency business and are wondering how to report the income, you need to know that there are different ways to report this income. You can file Forms 1099-DA, 8949, or TokenTax. These forms are used to report digital assets such as bitcoin, ether, and XRP.
Alternatives to Forms 1099 for crypto com tax forms
Forms 1099 are required for businesses paying more than $600 in a calendar year to certain financial service providers. These forms include a taxable amount, the interest rate, and the name of the company you are dealing with. While there are a number of different forms available, none are specifically designed for crypto tax reporting.
While the IRS has not published a draft form yet, Deputy Chief James Robnett of the IRS’s Cyber-Insurance Division confirmed that the agency is working on a new form that will report on a taxpayer’s cryptocurrency activity. In addition to reporting traditional 1099-B information, the new form will also include additional information that can help a taxpayer calculate their tax liability.
Alternatives to Forms 8949 for crypto com tax forms
Currently, the IRS provides two alternatives to Forms 8949 for crypto COM activity. You can either use a summation of the transaction or attach a document that breaks out the short-term and long-term trades. In either case, you must provide the IRS with complete details.
If you are unable to fill out a PDF Form 8949, you can use a spreadsheet program. These programs can generate the necessary information from the transactions you made, and they are acceptable to the IRS. The downside of these programs is that they do not handle larger amounts. You can only report up to 1,000 transactions per page.
Alternatives to TokenTax for crypto com tax forms
If you’re looking for a crypto tax software that can handle all of your crypto-related tax forms and reports, TokenTax is a solid choice. This software includes all of the features you’ll need for cryptocurrency income tax, crypto audit trails, and international gain/loss reports. Additionally, it has margin trading support and tax-loss harvesting capabilities.
Another option is CoinLedger, which focuses on saving you time and effort when it comes to accounting for crypto on your tax return. This software includes features like a free report preview, unlimited cryptocurrency exchange support, and international support. It can import data from major exchanges and generate tax reports automatically. It also offers tax software integration, which makes it possible to send tax reports to TurboTax and other popular tax software.
Forms 1099-DA (Digital Asset)
The IRS is getting ready to roll out a new tax form, the Forms 1099-DA (Digital Asset). This new form will help investors categorize their digital assets, and is expected to come out sometime in the 2020s. The form will likely differ from its current counterpart in several ways. For example, it will not require information on the cost basis of digital assets.
This new form was designed to address flaws in the current 1099 reporting process. Most forms use a cost basis calculation that does not properly account for crypto investors using multiple exchanges. In addition, they do not capture the entire history of transfer transactions. To address these issues, 1099-DA was created.
TaxBit for crypto com tax forms
TaxBit is a cryptocurrency tax software that will help you keep track of your crypto transactions and automatically generate tax forms. It also supports the DeFi platform, which makes it easy to sync your data from other software. It also supports ERC-20 tokens on the Ethereum network, as well as BEP-20 tokens on the Binance Smart Chain network.
As a crypto tax software provider, TaxBit has partnered with 20 of the most prominent crypto companies to provide their clients with free 2021 tax forms. Crypto taxes have traditionally been confusing, expensive, and cumbersome, and the cost of filing can run into the thousands of dollars per year. Additionally, consumer tax aggregators charge high fees depending on the volume of transactions.