Report it under Investment Sales. The proceeds will be whatever you get (around $5700) and your basis is whatever you originally paid for that 1BTC. The difference is a capital gain or loss. Reporting cryptocurrency is similar to reporting a stock sale. You'll need to report your crypto if you sold, exchanged, spent, or converted it.
You have to do this for every trade you make. If you bought coins at different prices or sold partial amounts, you have to keep track and record the difference of what you sold. The most common way to do this is to download your order or trading history from your exchange’s website. You may need to do this a few times throughout the year due to limits on how far back you can get information.
Once you have your figures, go here to learn how to add your crypto to TurboTax.
How is a capital gain or loss calculated?
Where do I enter capital gains and losses?
Your Crypto Tax Guide
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