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Level 1
posted Mar 10, 2021 10:44:59 AM

Financial interest in any virtual currency? " on IRS form 1040

I am looking for opinions to this question. On IRS form 1040 for the question "At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? "
 
So in 2020 I bought and sold 40 shares in the company Grayscale Bitcoin Trust, ticker: GBTC ,which is a publicly traded company that buys and stores cryptocurrencies. Those transactions are stated on my 8949 from e-trade, and I am going to be paying capital gains taxes on the sale when i file my taxes.
 
Can I check 'no' to the "virtual currency" question on form 1040 since I have never directly purchased or sold any cryptocurrency? 

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2 Replies
Level 1
Mar 10, 2021 11:03:32 AM

You can answer No to that question. Buying and selling shares of the trust don't make you directly involved into cryptocurrency transactions.  

Level 1
Mar 11, 2021 6:50:38 AM

Thank you for your response.