Form 8949 - Sales and Other Dispositions of Capital Assets

[deathandtaxes]

Lets say I buy 1 btc on 1/1/2018, and 2.5 on 1/4/2018.


Then I sell 3 btc on 1/5/2018.

1) How many sales transactions on 8949 would I report?

a) two sales transactions of 1 btc and 2 btc

b) one sales transaction of 3 btc

2) If I report one sales transaction of 3 btc, what would I enter for: (b) Date acquired (Mo., day, yr.)? I bought the btc on different dates.

Image: https://imgur.com/a/CXgqHGf

[secondcor521]

You only need to enter one line representing one sale of 3 bitcoin.  Enter "various" for date acquired.

[MustacheAndaHalf]

I'm overly cautious when it comes to the IRS, so years ago I paired up bitcoin purchase and sales in a spreadsheet, and listed the buy/sell dates separately.  My goal was to make it easy for me to match what I wrote with the records I kept.  Note when you purchase something with bitcoin, you are "selling an asset" (bitcoin) in the IRS' view.  When bitcoin leaves your possession, I'd report the value at the time it did so.  You might also want to print any records of the sale to PDF, and keep that with your tax returns.