Friday, February 17, 2023

About selling mined crypto and Form 8453

I don't know how you would do this. But in 2022, I mined some bitcoin. and sold it within the same year. I understand that there are two taxable events; income and when I sold it. The income part, I just place in schedule 1 underneath other income. That's simple enough.

However, when I sell the mined bitcoin, I have to establish a cost basis for it. This would be the price of the bitcoin when I mined it, subtracted by when I sold it. But this information is not reported to the IRS; I only have it as a csv. Would I need to attach this to a form 8453 and send it to the IRS? There's no checkbox on the form that allows me to send something like that so I'm unsure. But without the csv I don't know if the IRS will establish the right cost basis.


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