[capitalist pig]

Ive looked this up and got a variety of opinions, from old threads here. I’m going to have eight cb sells with the btc all coming from a book where everything is kept in US $. So when the btc hits cb and I sell immediately do I treat the incoming btc as my buy price and just use the cb sell price as the numbers on my 8949 tax form? It seems like that works and it all pretty much comes out as a wash with some small short term capital gains or losses

This is the first year I’m going to be getting the 1099 form from cb and I’d like to get it right. My guess is there are going to be a lot of posters with the same question, since this is the first year cb is 1099ing everyone with over $600 in transactions

Thanks to anyone who responds

[Rabiddog33]

Currently, Coinbase sends Forms 1099-MISC to U.S. traders who made more than $600 from crypto rewards or staking in the last tax year. The exchange sends two copies of Form 1099-MISC: One to the taxpayer and one to the IRS.

It looks like buying and selling Crypto is not included in 1099's yet.

[Rabiddog33]

I wouldn't send crypto directly from Sportsbook to Coinbase. They eventually will figure it out and might close your account.

[capitalist pig]

Currently, Coinbase sends Forms 1099-MISC to U.S. traders who made more than $600 from crypto rewards or staking in the last tax year. The exchange sends two copies of Form 1099-MISC: One to the taxpayer and one to the IRS.

It looks like buying and selling Crypto is not included in 1099's yet.

Thats not the way Im reading the cb site info, sells have to be reported since thats the number on the 1099misc form. If the IRS gets a 1099 copy and you dont check the crypto transaction box on the schedule 1040 tax form which automatically then generates a 8949 form for capital gains (using turbotax), that seems like a instant IRS red flag for 2021, the last two years the box was there on the 1040 form but they didnt send the IRS a 1099 misc till 2021

As far as sending to cb, I used a middle wallet forever, but it doesn't seem like they care anymore, I dont use cb anymore, I just use btc atms now

[Rabiddog33]

Thats not the way Im reading the cb site info, sells have to be reported since thats the number on the 1099misc form. If the IRS gets a 1099 copy and you dont check the crypto transaction box on the schedule 1040 tax form which automatically then generates a 8949 form for capital gains (using turbotax), that seems like a instant IRS red flag for 2021, the last two years the box was there on the 1040 form but they didnt send the IRS a 1099 misc till 2021
As far as sending to cb, I used a middle wallet forever, but it doesn't seem like they care anymore, I dont use cb anymore, I just use btc atms now

The way I read it, they just send them the income they know about. If you just sell at coinbase they have know idea your cost basis for those transactions so they can't issue a 1099 for that.


Are those ATM's KYC'ing you?

[DontTailMe]

The way I read it, they just send them the income they know about. If you just sell at coinbase they have know idea your cost basis for those transactions so they can't issue a 1099 for that.


Are those ATM's KYC'ing you?

Just to be clear, this is only what Coinbase has decided to do in order to remain compliant. Some exchanges will issue a 1099 for crypto sales. They don't need to know the cost basis to do so - it just becomes more work for you to show how much of those total sales is net profit when filing your taxes.

ATMs shouldn't KYC you as long as you transact under a certain amount per day. One near me that I've used a couple times is $3,000, and you just need a valid phone number.

[Shifty]

Your cost basis is the sportsbook payout amount. You take a BTC payout for 1000, sell it for 980 after fees, that is a $20 capital loss. If you sell for a profit, you have a capital gain. Most of the time you'll have a capital loss because of trading fees.