This is a partner post by TaxBit. This material has been prepared for informational purposes only by third party TaxBit, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal and accounting advisors to assess your tax strategy and obligations.
How's crypto taxed?
In the US crypto is taxed as property, which is a capital asset. Similar to more traditional stocks and equities, every taxable disposition will have a resulting gain or loss and must be reported on an IRS 8949 tax form. We provide individuals trading on Okcoin with an IRS Form 1099-B that details transaction-level activity of every taxable event throughout the year.
What is an 8949?
When you sell/trade crypto for a profit or loss, the IRS requires the details of the transaction to be reported on Form 8949, “Sales and Other Dispositions of Capital Assets”.
Form 1099-B summarizes the information that should be included on your IRS 8949. Your Form 1099-B will detail each asset you sell throughout the year. This form reports your cost basis, when available, for the assets you bought and sold on the platform. Your 1099-B will be issued by individual platforms you made disposals on in a given year, and is provided to you as well as to the IRS.