When US taxpayers dispose of cryptocurrency (or other capital assets) for a profit or loss, the IRS requires the details of the transaction to be reported on Form 8949, “Sales and Other Dispositions of Capital Assets.”
Form 1099-B summarizes the information that should be included on your Form 8949. Your BlockFi Form 1099-B will detail each asset you sell throughout the year on BlockFi. This form reports your cost basis, when available, for the assets you bought and sold on the platform.
Want help? Our partner TaxBit simplifies tax reporting by generating Form 8949 for you, which will reconcile to your Form 1099-B from BlockFi. TaxBit can be especially useful if you traded on multiple cryptocurrency platforms throughout the year. Learn more about TaxBit.