How TradeLog Handles Cryptocurrency (Digital Assets)

What is Cryptocurrency (Digital Assets)?

TradeLog uses the term Cryptocurrency (Digital Assets) to refer to products such as Bitcoin, Bitcoin Cash, Ethereum, Litecoin and others - which may also be referred to as virtual currency.

Tax Reporting of Cryptocurrency (Digital Assets) in TradeLog

NOTICE: Beginning with the 2025 tax year, US regulated exchanges or brokers will provide a 1099-DA to the IRS to report digital assets, including cryptocurrency. Digital assets will be reported on specific sections on the Form 8949 dependent on whether cost basis is reported on the 1099-DA. Support for this new reporting has not been completed in the current publicly available version of TradeLog.

Most traders in digital assets can use the new 1099-DA for simplified IRS tax reporting. TradeLog has limited functionality. If you have specific needs and would like TradeLog to support reporting of your digital assets (crypto currency), please contact our support team with details.

For tax years 2024 and earlier, TradeLog reports Cryptocurrency (Digital Assets) transactions and resulting taxable gain/loss on Form 8949 using category C or F of the IRS form. Wash sales are not adjusted on Cryptocurrency (Digital Assets) trades.

Because Cryptocurrency (Digital Assets) is not reported on 1099-B, these trades are excluded from 1099-B sales proceeds when running the reconciliation. Select the option No 1099-B when completing that step on a Cryptocurrency (Digital Assets) account in TradeLog - Click here for more details.

Setting up Account(s) in TradeLog for Cryptocurrency (Digital Assets)

In TradeLog Software, setup a separate Account Tab for the Exchange/Trading platform or provider you use for your Cryptocurrency (Digital Assets). A separate Account Tab can be setup for each individual Exchange.

Click here for instructions to Add Accounts in TradeLog.

Note: The Account Type should be set to Regular Cash Basis for Cryptocurrency (Digital Assets) accounts.

How are Cryptocurrency (Digital Assets) trades logged and identified in TradeLog?

TradeLog uses a Type/Mult of DCY-1 to identify Cryptocurrency (Digital Assets) trade history.

The Ticker field in TradeLog should list a standardized symbol for the Cryptocurrency (Digital Assets) product. Click here to refer to one list of standard symbols.

Symbols may vary based on user preference. However, it is important to consistently use the same symbol for proper matching of identical Cryptocurrency (Digital Assets) products.

Other trade record fields in TradeLog should be used as follows:

Date - The date the transaction occurred.

Time - The time the transaction occurred.

O/C - "O" is used for an opening transaction, where the Cryptocurrency (Digital Assets) was received. "C" is used for a closing transaction, where the Cryptocurrency (Digital Assets) was sold or exchanged.

L/S - Typically Cryptocurrency (Digital Assets) transactions will be reported as "L" for long trades. "S" would be used in short-sale situations where Cryptocurrency (Digital Assets) is sold/exchanged before being bought/received.

Ticker - See note above.

Sh/Contr - The number of units of a Cryptocurrency (Digital Assets) used in a transaction. For example, one complete Bitcoin would = 1. However, if you were to buy/sell with a fractional unit of the bitcoin that would be entered as a decimal. Note: TradeLog rounds to the nearest 5th decimal place.

Price - This would be the price/value at the time of the transaction for one (1) total share of the Cryptocurrency (Digital Assets). This price should be listed in the base currency used for reporting, typically US Dollars (USD).

Type/Mult - Should be DCY-1. See note above.

Comm - Any fees associated with the individual transaction would be entered here. Use positive amounts only. TradeLog will automatically add or subtract the amount depending if the transaction is a buy or sale.

Amount - The total value of the transaction in your base currency (typically USD). This is calculated by multiplying: (Sh/Contr X Price) +/- Comm = Amount.

Profit/Loss - This is calculated automatically using TradeLog.

Notes - Additional notes can be entered in this text field, if the transaction represents an exchange of Cryptocurrency (Digital Assets) for good/services you may indicate that information here for reference.

Click here to learn more about manually entering trades into TradeLog.