My second year filing the schedule D 1040 and 8949 turned out better than expected. If you have paid the 39 bucks to download your Ledger and exchange transactions to fill in the (Kxxnly) forms, (and) if you did a lot of swapping/trading, you probably have to manually review and edit the transactions in the software used to generate the IRS forms. In some cases it double posted certain transactions. I had to go through and delete several double posted transactions before generating the forms. Last year seemed like it worked smoother, but I didn’t swap any coins last year.
I was mostly concerned about the LUNA after it hit the ATH of over 115, and someone on this REDDIT sent out a “urgent message” to “get out or rid “of LUNA because it was falling hard fast. By the time I got my LUNA from my ledger to my exchange, and then did a no fee swap for ETH with what was left of my LUNA, I had in effect lost 1200 bucks, but saved losing it all thanks to that Redditor’s advice……Thanks REDDIT
After screening and editing the files, and generating the Schedule D and transaction worksheet 8949 (part 1), I was pleased to learn that the capital gains loss completely offset my income tax liability dollar to dollar. (Up to $3000 if filing jointly) I did not know that. In my specific case, this was the difference from owing or getting a refund from the IRS this year. I’m getting a three digit refund. I guess it’s better than nothing. HODL on.
#LUNA #loss #offset #Income #tax #year