What tax documents will I receive?
You will receive tax forms based on activity from the previous calendar year. River will provide a 1099-B and/or a 1099-NEC, if applicable.
Will I receive a 1099-B?
You will receive a 1099-B if you made a sale of Bitcoin with River during the previous calendar year.
What is a 1099-B?
1099-Bs may be used to report proceeds from a sale of an asset. 1099-Bs contain your personal account information and itemized information on each sale of Bitcoin. This may include; the date of sale, total USD proceeds from sale, type of gain or loss, and amount of Bitcoin sold.
What are Short and Long Term Tax Lots?
Bitcoin sales are aggregated by short term and long term tax lots. For example, if you are trying to reconcile your River account, one sale on River may appear as two sales on the 1099-B if it consisted of both a short and long term tax lot.
How do I calculate my Gains and Losses?
Your 1099-B will include the total proceeds from each sale of Bitcoin. If you transferred Bitcoin in from other sources, and that Bitcoin was subsequently included in a sale of BTC - River is unable to attest to the cost basis of that BTC, and no gain or loss will be reported on the 1099-B. You are responsible for determining the cost basis in order to report your personal gains and losses. If a sale is attestable, the gain/loss details will be populated under ‘Info 1’ next to ‘Type of Gain or Loss’ in the table at the bottom of your form.
For more information on the gain or loss of the sale of Bitcoin, we may direct you to your account statements. The ‘Summary of Gains and Losses’ table on page 2 of our account statements may include information that was provided to us by you. We may recommend downloading 1) a PDF of the month that the sale in question occurred to see a summary of that month’s gain/loss; and/or 2) the December 2023 Account Statement PDF, which will include year-to-date gains/losses.
A copy of the Form 1099-B is also required to be sent to the IRS. For more information, please see the IRS website.
Will I receive a 1099-NEC?
If you mined with River during the previous calendar year, you will receive a 1099-NEC.
What is a 1099-NEC?
Bitcoin earned through mining is considered taxable income. This has been reported on Form 1099-NEC (Nonemployee Compensation), at the fair market value of the Bitcoin on the day you received it.