TaxBit generates your tax forms with crypto specifically in mind. We work hard to ensure as accurate a form as possible given the data you provide us, and it's important to understand what is and is not included in your tax form.
TaxBit only collects a minimal amount of information from it's users. This is not only to minimize out security risks, but also to lower the barrier for entry into our software. Not all users require a filled out from 8949, and we don't want anyone to feel they have to provide all of their personal information to use TaxBit.
If you would like your name printed on your tax form, we recommend updating the "First Name" and "Last Name" part of your profile in your TaxBit account settings. If you need your social security number included on your tax form, we recommend writing this in by hand or using a PDF editor to include this on all pages.
Part I - Short-Term and Part II - Long-Term
This section of your tax form is used to identify what types of gains or losses are recorded in this section of the form. Your Short Term gains and losses will always be listed in the first part of the form, and your Long Term gains and losses will always be listed in the second part. Most users have far more short term transactions than long term.
Their are multiple columns that will identify different parts of the transaction information that are being reported.
Description of Property - This column will describe what quantity and the ticker symbol of the asset being disposed of.
Date Acquired - This column tells you when the asset was acquired.
Date sold or disposed of - This column will indicate when the asset was off-loaded.
Proceeds - This column expresses the value of the asset that was disposed in a USD value.
Cost or other basis - This column represents the cost of acquiring the asset in a USD value.
- FAQ: How is my cost basis determined? This is determined by your Cost Basis Assignment Method.
Adjustment - This column is not used for cryptocurrency accounting.
Gain or Loss - This column is the net result of the difference between your cost basis and your proceeds represented in a USD value.
Each transaction will include the information listed above, but why this information, and should it line up with your actual transactions?
It's important to understand that this data will likely not match up with stand-alone transaction data. These line items are broken up based on acquisition dates, and it's possible to dispose of a greater amount of an asset than what was acquired in any given acquisition transaction.
TaxBit's tax engine is designed specifically to do this math, and while it can be difficult to track manually, it's important to know that you can be confident in the breakdown of your provided transaction history.
The total of each section (Long term and Short term) will be displayed at the bottom right hand section of the last page for the section. In some cases, your form may have many pages and you will have to scroll to the last page of the section to see this number.
When you have more than 14 Long or Short term lines on your tax form, the continued style pages will automatically be included. These are still a part of the official form from the IRS, but they provide a condensed layout to include additional transactions.
Have additional questions? Feel free to check out articles from the rest of our knowledge base!
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