You'll need to sign in or create an account to connect with an expert.
Please follow the instructions in this TurboTax help topic to report your cryptocurrency capital gains and losses.
Hi, if I only make a gain loss trading cryptocurrencies, is it mandatory for me to enter it in my taxes next year? (USA)
Eg.
- Bought 1 BTC 2 years ago for let's say $ 5,000
- This year I sell 1 BTC for $ 8000 and right after that the price goes up
- I use all the $ 8000 to buy BTC back and get less of it than my initial holding (eg. 0.8 BTC)
(I know that it can be carried over into the following year at my advantage but I would prefer not to as I don't plan on cashing out any other investments any time soon)
Thanks!
There is no carrying over.
Once you sell you owe tax on that capital gain of $3,000. What you do next has no bearing.
It is short term or long term depending on your holding period
2 years is a Long Term holding period.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Bill413
New Member
MLP_Banana
Level 3
Sea3_G
New Member
Ash94
New Member
taxquestion222
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.