You forwarded this message to me.
You said, "The interest (even in crypto) is taxable to you in the year you receive it, just like bank interest."
It is opposite what Basement_Buzzard said above about the IRS losing its case to double tax crypto. The IRS has declared crypto Property not currency.
Who is right?
If Basement_Buzzard is right, we do not need to report interest earned in crypto at all.
If you are right, then the question remains. What is the best way to report my 120 transactions (10 coins got interest each month) using the TT desktop version?
- I stand by my statement "The interest (even in crypto) is taxable to you in the year you receive it, just like bank interest."
- This does not negate Basement Buzzard's statement that it will not be taxed twice.
- You will pay tax on the interest. This becomes your basis.
- If you sell the crypto it will be taxed on the sale price less the bases. There is no double taxation.
- If you can upload the 120 transactions it would be easiest.
- If you enter them manually, you can use this format.
- With your return open, go to
- Federal
- Wages & Income
- Less Common Income
- next to Miscellaneous Income, 1099-A, 1099-C
- Select Other Reportable Income
- Answer Yes on Any Other Taxable Income? Screen
- Continue through the interview
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