Did either of you acquire, sell ...any virtual currency in 2021 question

Forum|Forum|4 years ago
February 14, 2022
7 replies
30 views

I just acquire some bitcoins from Coinbase and did not sell it. What should I say? Yes or NO ?

Best answer by DMarkM1

The virtual currency question is found after entering income and clicking "Wrap up income" at the bottom the page. There may be other follow on questions prior to arriving at the cryptocurrency question.

NOTE: You will answer "Yes" or "No" depending on how you acquired the currency and what you did with it. The IRS FAQ will guide you. I draw your attention to Q5. If you simply purchased the virtual currency with real currency and did nothing else you can answer "No."

tmunoz

Level 13

Please answer "Yes". If you acquired any virtual currency in 2021, the IRS will want you to answer "yes" to this question, even if it is not a taxable event this year. This question is right on Form 1040, so it is included in everyone's return.

Rules for the taxation of cryptocurrency are still evolving, so this is different than the question last year. For more information, please see this IRS frequently asked question page. IRS Virtual Currency FAQs