# Koinly and Turbo Tax

**URL:** <https://discuss.koinly.io/t/koinly-and-turbo-tax/12218>\
**Category:** Tax Questions\
**Created:** [March 12, 2022, 6:18am UTC](https://discuss.koinly.io/t/koinly-and-turbo-tax/12218 "2022-03-12T06:18:59Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![chugsteruno](https://avatars.discourse-cdn.com/v4/letter/c/58f4c7/32.png) [@chugsteruno](https://discuss.koinly.io/u/chugsteruno)\
**Post date:** [March 12, 2022, 6:18am UTC](https://discuss.koinly.io/t/koinly-and-turbo-tax/12218/1 "2022-03-12T06:18:59Z")

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Looks like all koinly capital gains and loss imports ( referring to the turbo tax online file created by koinly ) to turbo tax creates a separate 8959 with box c checked - short term/long term transactions not reported to u on 1099-B.

This is ok for defi transactions as 1099-B never get sent out for them anyways but it becomes a problem in case the exchanges like kraken, coinbase etc reports 1099-b sales to irs and we import these exchanges data into koinly . In this scenario koinly/turbo tax will falsely tag all of these in 8959 as option ‘c’ ( short term/long term transactions not reported to u on 1099-B. ) as koinly/turbo tax imports is not able to differentiate between form 8959 a, b or c to be checked as it always tags all transactions as option c .

So in net - will that be an issue with tax filing ? or should we just discard the 1099-b send by exchanges to irs as their cost basis reported in 1099-b would be messed up anyways in case of token transfers across exchanges /wallets as the exchanges would always have a zero cost basis for the tokens received on their end in which case which is WRONG . If we go the koinly route we would be able to correctly capture the cost basis for all token transers and subsequent sell transactions .

What do u guys think ? Thoughts ?

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**Author:** ![system](https://canada1.discourse-cdn.com/flex052/uploads/koinly_app/original/1X/7ac58e5593a7122893d066794a7254dcdb5ddb31.png) [@system](https://discuss.koinly.io/u/system)\
**Post date:** [May 11, 2022, 6:19am UTC](https://discuss.koinly.io/t/koinly-and-turbo-tax/12218/2 "2022-05-11T06:19:05Z")

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