By 'TurboTax question', I think you mean the question Do you own or control a foreign bank account, trust or financial asset in 2024? This question is found in Part III of Schedule B Interest and Ordinary Dividends.
Do you own or control a foreign bank account or financial asset?
Currently, the Report of Foreign Bank and Financial Accounts (FBAR) regulations do not define a foreign account holding virtual currency as a type of reportable account.
Does an account in a crypto exchange in England qualify as a foreign bank account?
Currently, the Report of Foreign Bank and Financial Accounts (FBAR) regulations do not define a foreign account holding virtual currency as a type of reportable account.
Does the crypto itself qualify as a financial asset?
For U.S. tax purposes, digital assets are considered property, not currency.
What's a digital asset under Digital Assets
If your crypto in on a cold wallet and no longer on the exchange, does that qualify as a financial asset under the Turbo Tax question?
Yes, you have a financial interest in a digital asset if you:
- Are recorded as the owner of a digital asset
- Have an ownership stake in an account that holds one or more digital assets, including the rights and obligations to acquire a financial interest
- Own a wallet that holds digital assets
How to answer the digital assets question under Digital Assets
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