AI Summary
- Form 8949 is the IRS form where US taxpayers report every crypto disposal (sales, trades, spending)
- The KoinX report matches the exact column format required by the IRS, including proceeds, cost basis, and gain/loss
- Transactions are automatically split into Short-Term (held one year or less) and Long-Term (held more than one year)
- Form 8949 totals flow into Schedule D when filing your tax return
- A blank Form 8949 is correct if you only bought and held crypto during the year
What Is Form 8949?
Form 8949 (Sales and Other Dispositions of Capital Assets) is the IRS form used to report selling crypto for fiat (USD), crypto-to-crypto trades, using crypto to purchase goods or services, and any disposal of a digital asset. Every transaction reported here is later summarised in Schedule D, which calculates your total capital gains or losses.Understanding the Report Fields
The KoinX Form 8949 report includes the same columns required by the IRS.| Column | IRS Field | What It Means |
|---|---|---|
| Description of property | Column (a) | Asset disposed of (example: 5 MATIC) |
| Date acquired | Column (b) | When you originally purchased or received the asset |
| Date sold or disposed of | Column (c) | When the asset was sold, traded, or spent |
| Proceeds | Column (d) | Total value received from the sale |
| Cost or other basis | Column (e) | What you originally paid for the asset |
| Codes | Column (f) | IRS adjustment code (if applicable) |
| Amount of adjustment | Column (g) | Adjustment amount if corrections are needed |
| Gain or (loss) | Column (h) | Proceeds minus cost basis |
Short-Term vs Long-Term Transactions
The report automatically splits transactions based on holding period.
Adjustments and IRS Codes
The report includes fields for adjustments that may be required by the IRS: Codes (f) and Amount of Adjustment (g). These adjustments are typically needed when the exchange reported incorrect cost basis, wash sale adjustments apply, or additional corrections are required from broker statements. The report includes Self Filing Tips explaining that these adjustments should be filled using data from your 1099-B form provided by your exchange.How to Use This Report for Filing
Apply adjustments if required
Apply adjustments using 1099-B data from your exchange, if applicable.
Why Is My Form 8949 Blank?
If the report shows no transactions, it may be because you only bought and held crypto (Form 8949 only reports disposals, not purchases), the wrong tax year is selected, your transactions were only wallet transfers (not taxable events), or some exchange data is missing. A blank Form 8949 is normal if no crypto disposals occurred.Do I Need Form 8949 If I Only Held Crypto?
No. Form 8949 reports disposals only.| Activity | Form 8949 Needed |
|---|---|
| Bought and held | No |
| Sold crypto | Yes |
| Crypto-to-crypto trade | Yes |
| Paid with crypto | Yes |
| Staking rewards | No |
| Airdrops | No |
Does This Work with TurboTax?
For TurboTax imports, use the TurboTax Gain-Loss Report instead. The Form 8949 report is designed for manual filing, sharing with a CPA, tax software that accepts Form 8949 format, and paper filing.Wash Sale Rules and Crypto
The wash sale rule currently applies to stocks and securities. For crypto, the IRS has not definitively applied wash sale rules to crypto, though future legislation may change this. Some tax professionals recommend tracking them anyway. Always consult a tax professional for the latest guidance.Frequently Asked Questions
My Form 8949 report is blank. Is something wrong?
My Form 8949 report is blank. Is something wrong?
No. If you only bought crypto and did not sell or trade it during the tax year, the report will correctly show no transactions.
What is 'Proceeds' in the report?
What is 'Proceeds' in the report?
Proceeds is the total amount you received when disposing of the asset. If you sell crypto for 10,000.
What is 'Cost or Other Basis'?
What is 'Cost or Other Basis'?
This is the original value of the asset when acquired. If you bought crypto for 6,000.
How is Gain or Loss calculated?
How is Gain or Loss calculated?
Gain or Loss = Proceeds minus Cost Basis. Example: Proceeds 6,000, Gain = $4,000.
What are the adjustment columns for?
What are the adjustment columns for?
Adjustments allow corrections based on broker reports such as 1099-B forms. These are entered using IRS codes and adjustment amounts.