Get your taxes done using TurboTax

Wrapped Crypto is like any other crypto currency. If you did a swap, it is reported as a capital gain or loss. To report, go to;

1. Federal>wages and income 
2. Go to investment come>stock, bonds, other
3. Proceed through the interview until you get to a page that is entitled Tell us about this sale
4. Under description type in Crypto Swap from Eth 1 to Eth 2
5. Date sold will be the date of the swap and the relinquish the old token in exchange for the new wrapped crypto.
6. Date acquired will be the date you received the old crypto
7. Sale proceeds will be the value of the new wrapped crypto
8. Cost basis is the value of the old crypto
9. Holding period is determined by the dates sold vs the dates acquired.  If you own the old crypto longer than one year, then this is long -term.  If you are using Turbo Tax online, you would probably use long-term uncovered because more than likely, the basis wasn't reported to the IRS prior to now.

if this is located as other income, you need to remove this from your return.  If you reported it in a section, go to that section and remove it. Without looking at your return, it is difficult for me to tell you how to remove it.

Reach out to us if you need further assistance.

{Edited 03/02/23} 1:36 PM PST} @RGQ20