TL;DR: This article explains how to generate and understand US-specific tax reports in CoinTracking, including Form 8949, 1040, FBAR, IRS Form 8938, and how to handle new IRS Revenue Procedure 2024-28. It also covers the correct account currency setting for US forms, reallocation reports, FBAR discrepancies, exporting guidelines, and differences in CGR values.
What US tax forms can I generate with CoinTracking?
CoinTracking supports several tax forms required for US filing:
Form 8949: For capital gains and losses. Available as a CSV export.
Form 1040 Schedule D: Capital gains summary. Part of the full PDF tax report.
FBAR (FinCEN Report 114): Foreign bank account holdings, using wallet balances.
IRS Form 8938 (FATCA): Shows gains/losses per exchange, using the general CSV export.
To download your full US tax report:
Select "United States" as your country on the tax report page.
Load the report.
Click Download Tax Statement.
Choose PDF for full or summary format.
Which currency should I use for US tax reports (Form 8949 / 1040)?
The country you select on the tax report page (e.g., "United States") determines which tax forms are generated, but it does not control the currency of the values shown on those forms. The currency displayed on Form 8949, Form 1040, and other tax reports is determined by the Account Currency setting under Account Settings.
To have Form 8949/1040 display values directly in USD, set your Account Currency to USD in Account Settings before generating the tax report.
If your Account Currency is set to a different currency (e.g., EUR or another local currency), the tax forms will show values in that currency instead of USD.
If your account is not set to USD, you will need to manually convert the values on your printed tax forms to USD before filing, since IRS forms require amounts in USD.
Setting the Account Currency to USD upfront avoids the need for manual conversion and ensures the figures on Form 8949 and Form 1040 already match what the IRS expects.
How do I open the Form 8949 CSV correctly?
Open Excel and go to File > Open.
Choose Text Files in the dialog box.
Select your downloaded 8949 CSV file.
This ensures proper column formatting.
Why is my FBAR report incorrect?
FBAR values may differ from the "Balance by Coins" or "Balance by Exchange" reports if:
Fiat deposits/withdrawals are missing.
There are transaction warnings.
Unlike balance reports (simple net calculations), FBAR does not allow negative balances. Ensure all data is validated.
What is IRS Revenue Procedure 2024-28 and how do I comply?
This introduces Depot Separation (wallet-by-wallet cost basis tracking). CoinTracking supports this with the Reallocation Report.
Steps:
Generate your Tax Report.
Scroll down and load the Reallocation Report.
If any changes occur, regenerate the Tax Report.
Choose a sequence: HPFI, HPLI, or FIFR.
Identify and tag Cold Wallets if applicable.
Save the Reallocation Report.
Note: Safe Harbor Allocation Plan must be created by December 31, 2024.
How does reallocation work with Cold Wallets?
Cold wallets (low-activity) are assigned cost bases via:
HPFI – Highest price, oldest holding
HPLI – Highest price, most recent holding
FIFR – First in, first received
This ensures wallet-specific cost base accuracy.
What happens in future tax years after reallocation?
The reallocation sets a baseline for cost bases moving forward.
For 2025+, each tax report can reference one reallocation report.
This maintains consistent reporting year over year.
My FBAR or Form 8938 reports don’t match balance pages. Why?
These reports use:
Validated, timestamped transactions.
Accounting rules (no negative balances).
Adjustments based on transaction order.
Tip: Ensure deposits don’t precede withdrawals in time.
Why are capital gains in CGR different from my tax forms?
CGR shows full-precision values.
Tax forms round to whole numbers (e.g., USD).
Both are correct. They just follow different formatting standards.
Where can I get help?
Use the Help Panel in the Tax Report section.
Review Transaction Flow Report for warnings.
Contact CoinTracking’s Full Service Team for assistance with setup or CPA-related questions.
Summary
CoinTracking provides full support for US tax filing, including Form 8949, FBAR, and IRS Revenue Procedure 2024-28 compliance. Set your Account Currency to USD to avoid manual conversion, and understand reallocation, wallet-level tracking, and proper reporting to ensure accurate and audit-ready tax documentation.