Understand the 1099-B form and its significance in reporting cryptocurrency transactions to the tax authorities.
A 1099-B form is an official document used to report certain types of financial transactions, specifically related to the sale or exchange of securities, including cryptocurrencies. It is issued by brokers or financial institutions to both the Internal Revenue Service (IRS) and the individual taxpayer.
Filling out a 1099-B form does not directly determine whether you owe taxes or not. The form is used to report your cryptocurrency transactions, providing crucial information to the IRS. Based on the information provided on the form, the IRS assesses your tax liability. Whether you owe taxes or not depends on various factors, such as the gains or losses incurred from your cryptocurrency transactions and your overall taxable income.
Click here to learn how to generate your 1099-B tax report.
Uphold can only provide information that it has access to.
When an asset is transferred from an external wallet, we’re unable to complete either the “Date Acquired” column (which relates to the date the asset was originally bought or acquired), or the “Cost or Other Basis” column (which relates to the original price paid for the asset) since Uphold is not party to that information.
You can find guidance on reconciling information from Form 1099-B with Form 8949, as well as instructions on consistent basis reporting, on the IRS website.
If you have sold an asset on Uphold that was originally acquired elsewhere, or you have further questions we recommend you speak with a tax professional.
Important Notice: This information is provided as a general guide, and it is not intended to serve as tax advice. Each individual's tax situation may differ, and it is essential to consult with a qualified tax professional for personalized advice based on your circumstances.