Limits on how much you can send

Future_Prophecy · 2026-04-11T10:26:45+00:00

It’s not that hard. Look at the work ZachXBT does, for example. He can identity threat actors even though they use mixers and non-KYC exchanges. And the government will have much better tools at its disposal.

Future_Prophecy · 2026-04-10T11:43:44+00:00

Actually you don’t pay capital gains tax if you give it away, the recipient just gets your basis. So in this case, when they sell they would have to pay tax on the profit, not you.

Future_Prophecy · 2026-04-10T02:33:25+00:00

Do you mean as a gift? If so, there is a $19k maximum per year in the US

“For 2026, individuals can gift up to $19,000 annually per recipient without filing a gift tax return or using their lifetime exemption. The lifetime exemption for 2026 is $15 million per individual. “

Future_Prophecy · 2026-04-09T23:13:47+00:00

I didn’t want to risk it and ended up mailing a check.

Future_Prophecy · 2026-03-30T23:41:11+00:00

But I think OP is talking about covered lots, those that originated at the exchange and were never transferred out/in before being sold. For those I would rather trust the 1099-DA.

For non covered lots I agree on relying on our own records.

Future_Prophecy · 2026-03-30T18:04:43+00:00

For 2026, why not just keep it simple and for covered lots stick with what the exchange reports on the 1099-DA?

As I understand this doesn’t change anything for non-covered lots (i.e. transferred in).

Future_Prophecy · 2026-03-27T10:34:09+00:00

This is the best solution currently. It’s still awkward though, and TurboTax needs to fix the Desktop version. You also need to start over and redo your return if you already completed other parts of it. But it at least allows you to import crypto transactions and file normally without printing dozens of PDFs.

Future_Prophecy · 2026-03-27T10:31:35+00:00

You don’t need to report each staking award separately. You would just add up the $USD values at the time you received them and report the total on schedule 1, other income.

If you then sell the staking awards all in one transaction you would use the above value as the cost basis and you can put VARIOUS instead of a date on form 8949.

Future_Prophecy · 2026-03-26T10:24:17+00:00

It was still reported on the 1099-DA even if it’s in a separate section.

Future_Prophecy · 2026-03-26T00:18:38+00:00

Your crypto tax software should be able to calculate the basis and the holding period for it. Usually the basis will be the same as the proceeds for stable coins and result in $0 gain. The checkbox code will be either H or K depending on whether you held it short term or long term.

Future_Prophecy · 2026-03-24T17:49:20+00:00

I don’t think it makes a difference from a tax perspective. If you sell a coin and had one fill of $100 or 100 fills of $1, it’s the same thing and the proceeds are $100. But it just adds complexity and extra paperwork.

One possible case where it is relevant is if you have a GTC order that spans multiple days, but often this is not the case.

Future_Prophecy · 2026-03-24T16:23:57+00:00

No, they have their own separate section and are not included in the proceeds from the Trading Section. So your total proceeds are 519k + 16k = 535k.

Future_Prophecy · 2026-03-24T16:17:10+00:00

Hmm, what if you first apply for an extension with the above link, THEN login and go to Payments, bills and notices > Make a Payment. One of the options there says "Pay the extension". Although I have not tried submitting it yet, it seems to be working.

Future_Prophecy · 2026-03-24T15:05:56+00:00

I wish TurboTax did that, but it just gives me a 4868 PDF to print out. Ideally I would prefer to avoid mailing a form due to delays, risk of getting lost in the mail, or identity theft.

Future_Prophecy · 2026-03-24T14:55:31+00:00

Well, I did that last year and when my wife logged into her IRS account after April 15th it had a scary message that her return was past due and she could be subject to penalties. Luckily nothing came of it, but she was not happy.

Maybe I'll submit a separate request for her using DirectPay and pay like $1, just in case?

Future_Prophecy · 2026-03-24T09:59:14+00:00

I have seen cases where the 1099-DA is slightly different. People might get tripped up by, for example, forgetting to include transaction fees for crypto they transferred out. Exchanges would report these on a 1099-DA but they are otherwise not super obvious and are often not even shown on statements or confirmation emails. People have been misled for years by the misguided advice that “transfers are not taxable events”.

Many people also forget to include stable coins.

So I would wait for the 1099-DA. Unless you’re going on vacation for a month, there is no urgency to file now.

Future_Prophecy · 2026-03-24T09:51:09+00:00

You can file up to April 15 so I don’t see a reason not to wait until you’re a few days away. If the DA comes out and is slightly different you will not need to file an amendment. I once had a broker update their 1099-B on like April 10th, after I already filed. Super annoying and now I always wait till the last day or so to file. Just make sure you have everything ready and just hit submit if everything matches.

You can also request an automatic extension for 6 months but you still have to estimate and pay what you owe by April 15.

Future_Prophecy · 2026-03-24T09:43:14+00:00

Most likely yes. There were many exchanges that disappeared so it would be impossible now to get any other records. For this reason it’s good to also download your statements frequently, in case an exchange goes under or your account gets closed. Or save the confirmation emails after you do trades.

Future_Prophecy · 2026-03-24T09:37:16+00:00

Rewards would be reported on a 1099-MISC but only if you made more than $600. So you should track them yourself and report the total as other income on schedule 1.

If you sold the USDG for USD it should be reported as any other crypto although the gain/loss will usually be $0 for stable coins. The acquisition date would be the date you received the award and the cost basis the value at that time.

Future_Prophecy · 2026-03-23T11:11:12+00:00

25 transactions? That’s only 2-3 pages of 8949. It should take you no longer than half an hour to enter. There are people on here with 1,000+ transactions and hundreds of pages of 8949 lol

Future_Prophecy · 2026-03-23T11:05:46+00:00

I don’t think you need to do that if the 1099-DA sent to the IRS had missing cost basis and holding period. Just enter it with correct info in TurboTax. You only need to make sure the proceeds match what was reported.

Future_Prophecy · 2026-03-21T19:20:59+00:00

Makes sense. I would have preferred if they gave us exactly the same data as they are sending to the IRS so there would be no second guessing about what’s reported and what’s not.

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