Cryptocurrency is considered property by the IRS and every move
within the tax year is a recordable transaction. Only Cryptocurrency
held for investment has a gain/loss. Cryptocurrency for personal property is
only gains, no losses (so for purchases of goods and services, there is only
gains, no losses as they are personal).
To reports gains/losses allowed (NOT FOR MINERS, miners report as self employed on schedule C and the
cryptoccy for them is as if they produced and sold inventory, they produce it and get crypto as income at the spot rate and sell it like any other property) . Non-miners
go to "Personal",
"Investment Income", "Stocks, Mutual Funds, Bonds,
Other", and record each transaction with the date you sold the coins, for
how much, when you acquired them, and for what. Choose Other as the
category. You
can't take a loss on personal items (if you used cryptoccy to purchase goods
and services) which you report those under Other/personal items/other. Cryptocurrency
for investment purposes is recorded as Everything Else. Make sure only personal
use cryptocurrency is recorded in the personal Items section.
https://www.irs.gov/pub/irs-pdf/p544.pdf and https://www.irs.gov/pub/irs-pdf/i8949.pdf
are the IRS rules for property and reporting. Personal property net
losses are not deductible but investment property is.... follow the IRS
guidelines for property.
IRS guidance
on cryptocurrency as property:
https://www.irs.gov/newsroom/irs-virtual-currency-guidance
https://www.irs.gov/pub/irs-drop/n-14-21.pdf
I hope this was helpful?
**I don't work for TT. Just trying to help. All the best.
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