Comment Re:Mob mentality. (Score 1) 47
I have no idea how that's even supposed to work, and I'm seriously trying to stay legal (a few grand a year isn't worth prison time). Neither Schedule D nor 8949 make a lick of sense unless you have a value for the "Proceeds" column - Which you don't have unless you've sold something. And sure, go ahead and put a huge unsubstantiated number on your schedule 1 line 8 and see how well that goes for you.
Pretty much the only way I've figured out to comply with that ridiculous requirement is to make a semi-fake wash "sale" of each new year's new mining payouts every December 31st - Which itself is a grey area but since it would always be a gain, never a loss, it's technically kosher; so at least if I get a CP2501 or similar I'll have paid "enough" taxes already and any penalties would be $0.
The IRS is, bluntly, trying to play both sides of the fence on this one. They're treating crypto as money on receipt, and as property on disposition. And have given us no reasonable way to reconcile that discrepancy.