Do I need to report crypto info if I’ve lost money overall?

Salesforce qawaaaj
Feb 27 14 Comments

I’m using TurboTax and I can import info from Coinbase but not Coinbase Pro (aka gdax).

Coinbase info alone show gains but I’ve lost most of my money in Coinbase Pro.

Do I have to import Coinbase info into TurboTax? If I do, I have to pay tax, even though I’ve lost money in crypto overall.

Note: I had only put 4k into crypto and lost 2-3k. So I’m well under the 20k reporting limit. So maybe IRS will never find out if I don’t report?

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TOP 14 Comments
  • eBay
    seat

    eBay

    BIO
    Why did you click on me 😡
    seatmore
    Report enough to offset your capital gains. The IRS isn’t gonna spend the time to verify your crypto
    Feb 27 4
    • Microsoft Dr. Root
      Wtf 😂
      This is terribly advice. The crypto exchanges have started reporting customer gains to the IRS. Following your advice is a great way to get arrested for tax fraud. Idiot.
      Feb 27
    • Google / Eng
      howwzz

      Google Eng

      PRE
      Microsoft
      BIO
      12 yrs engineer in tech
      howwzzmore
      Totally agree with root. Kind of stupid to lie to IRS, especially for crypto where all your activity is digital, and just requires a tool for IRS to track it for millions of users
      Feb 27
    • Google / Eng
      howwzz

      Google Eng

      PRE
      Microsoft
      BIO
      12 yrs engineer in tech
      howwzzmore
      One day IRS will get these tools ready, and go after all faulters
      Feb 27
    • eBay
      seat

      eBay

      BIO
      Why did you click on me 😡
      seatmore
      Nah, just go for it. Nothing bad will happen
      Feb 27
  • Google YAPTRF
    Why wouldn't you report. You can carry those losses to future years. Limited to excersizing 3k/year of losses.

    With just 2-3k of losses it's a win
    Feb 27 2
    • Salesforce qawaaaj
      OP
      But idk how to report Coinbase Pro info if it doesn’t automatically import to TurboTax
      Feb 27
    • Google YAPTRF
      You can do manual cap gains tax. I'd assume you just enter in the basis (what you paid) and the sale price /loss.

      I'm not sure if it matters if this is short vs long term capital gains loss
      Feb 27
  • New / Eng sparked
    The answer is yes you need to report both
    Feb 27 1
    • New / Eng sparked
      Well you don’t need to report the losses but it will negatively impact things.
      Feb 27
  • Amazon Username*
    "Maybe IRS will never find out" is a terrible way to think about it.
    Money that left your bank account is easy to trace. They started taxing crypto, so they are paying attention now.
    Al Capone got away with murder, but the tax man got him.
    Feb 27 0
  • Google / Eng
    howwzz

    Google Eng

    PRE
    Microsoft
    BIO
    12 yrs engineer in tech
    howwzzmore
    Report everything, use bitcoin.tax or cointracking.info
    Very easy to prepare a report. Make sure you claim deduction on all losses
    Feb 27 0
  • Microsoft Dr. Root
    Use Bitcoin.tax
    That pulls all your trades from coinbase, coinbase pro and other exchanges as well.
    Feb 27 0
  • General Motors Y1pYip
    You get tax deduction, I did it and got more returned back than emitting the crypto loss.
    Feb 27 0

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