Solved: Bitcoin sold on an exchange
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Returning Member

Bitcoin sold on an exchange

If I sell Bitcoin on an exchange and receive cash over $10000, do I need to file Form 8300 after the transaction or when withdrawing the funds to a bank? I already file a Form 8949 with my 1040  reporting all trades.

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Level 15

Bitcoin sold on an exchange

First of all, you have to be engaged in a trade or business and have received the cash in the course of that trade or business. 

 

Also, review the definition of "cash" for reporting purposes.

 

The term “cash” means the following.

• U.S. and foreign coin and currency received in any transaction; or

• A cashier’s check, money order, bank draft, or traveler’s check having a face amount of $10,000 or less that is received in a designated reporting transaction (defined below), or that is received in any transaction in which the recipient knows that the instrument is being used in an attempt to avoid the reporting of the transaction under either section 6050I or 31 U.S.C. 5331.

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4 Replies
Level 15

Bitcoin sold on an exchange

First of all, you have to be engaged in a trade or business and have received the cash in the course of that trade or business. 

 

Also, review the definition of "cash" for reporting purposes.

 

The term “cash” means the following.

• U.S. and foreign coin and currency received in any transaction; or

• A cashier’s check, money order, bank draft, or traveler’s check having a face amount of $10,000 or less that is received in a designated reporting transaction (defined below), or that is received in any transaction in which the recipient knows that the instrument is being used in an attempt to avoid the reporting of the transaction under either section 6050I or 31 U.S.C. 5331.

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Returning Member

Bitcoin sold on an exchange

Perhaps I should re-phrase the question. I sell Bitcoin on an exchange using a personal account. I then transfer $10000 or more of that sale to a personal bank account. Am I required to file a notice or form of any kind to the IRS or file an informational letter with the exchange or bank involved? Again the details regarding the transaction are included in the Form 8949 filed with my 1040 for the year concerned. Basically, do I have to notify anyone when withdrawing $10000 or more from my personal exchange account? TIA.

 

Level 15

Bitcoin sold on an exchange

Not if this is not a foreign account and the transfer is electronic.

Returning Member

Bitcoin sold on an exchange

Thanks for replying. I think you have answered my question,

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