I have done transactions on Binance and Coinbase Pro for Crypto trading. I have used Turbotax for tax filing for past years. I file the taxes myself. Questions: 1) I am planning to use CryptoTrader.tax / Biotcoin.tax to get a transactions file (8949?) which can be fed into TurboTax. Has someone done this before ? Anything to keep in mind ? 2) Any preferences between CryptoTrader.tax / Bitcoin.tax / anything else which is similar ? 3) I also received 1099-K from Coinbase. Do I need to add the 1099-K details also to the tax return ? I did not get a 1099-K for 2017. 4) I made losses in Crypto 🙁. Anything to keep in mind while filing the tax return due to this ? Thanks!
Hey Im a Cpa and I can better assist your questions in a phone call. DM me if you want!
It's the most common scenario and I handled it with crypto tax software and TurboTax. Since the situation is similar, you could use the same combination. I used BearTax to fetch my transactions into one place and then generated an export file for TurboTax. 1099K generally has a record of all payments made for you. For an exchange, it's every time you settled a trade - so those numbers don't represent anything. It is on you to report properly, else all those numbers on 1099K will be assumed to be your gain/loss. You can claim losses upto $3000 for this year and can carry forward if you have more to next year.