taxpayers can expect to receive reporting documents, such as Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, for digital assets in Tax Year 2023.
You can handle capital gains and losses on your tax return with the aid of the 1099-B. Normally, when you make a profit on the sale of an item for more than you paid for it, it is considered a capital gain and may be subject to taxation. The opposite is also true: if you sell something for less than you purchased for it, you may have a capital loss that you can utilise to lower your taxable capital gains or other income.
Capital gains taxes are normally paid using Schedule D together with your income tax return.
If necessary, Schedule D and Form 8949 can be filled out using the information from Form 1099-B.
To know more about form 1099-B, visit:
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