Does anyone know how to calculate taxes and a Crypto ICO investment?

[DianeW777]

It depends. If you purchased and sold/traded Crypto then you would report that as a sale of investment. If you held the Crypto from an initial coin offering (ICO) there is nothing to report until you trade or sell it. Keep track of all purchases and sales.

To enter your sale in TurboTax, follow these steps. Click this link for more information. Where do I enter Investment Sales?

1. Open or continue your return.
2. Navigate to the investment sales section:
   • TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
   • TurboTax Desktop: Search for investment sales and then select the Jump to link. 
     • Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
3. Answer Yes to the question Did you sell any of these investments in 2024? (or Okay! to Time to kickoff your investments!).
   • If you land on  the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.

[mhart82387]

It is from an ICO investment. What would be the potential taxes upon sales under 1 year? 

[JamesG1]

Such a short-term gain would first be offset by short-term losses that you report and, possibly, long-term gains that you report.

A short-term gain would be taxed at ordinary tax rates that depend upon your filing status and income bracket.

See tax brackets here.

@mhart82387