What should I do if I receive a 1099-Misc from an exchange? Meaning, if I retail transactions in koinly, it causes double accounting of transactions since I have to declare the 1099-Misc. If I remove transactions from the exchange entirely, I will lose the cost basis for all assets in the excahnge when I transfer funds out. What should I do?
Hi there!
Some exchanges indeed supply 1099-MISC forms (those with KYC)
These forms usually include your Income data and though you can use this to file, it is not recommended as these forms are isolated to that one exchange. It is better to file using Koinly as we will take into account your trading on all platforms.
Note: One important thing about 1099s is that they haven’t been filed for you the IRS has just been notified and they will be expecting this income on your report, whichever way you file it.
So 2 options, either disregard the 1099 the exchange gave you, and document everything in Koinly, OR remove the income listed on this 1099 from your Koinly transactions, and file it separately.