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rondog86
New Member

1099-k form on the website says its for crypto, but i am reading most places its for selling things on online marketplaces like ebay. where do i find the form for that?

 
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1 Reply
JamesG1
Expert Alumni

1099-k form on the website says its for crypto, but i am reading most places its for selling things on online marketplaces like ebay. where do i find the form for that?

Cryptocurrency transactions or digital asset transactions are reported on different forms depending upon the nature of the transaction.

 

Many transactions involving a digital asset are generally required to be reported on a tax return.  Different tax forms are used based upon the nature of the transaction.

 

Taxable income, gain or loss may result from transactions including, but not limited to:

 

  • Sale of a digital asset for fiat
  • Exchange of a digital asset for property, goods, or services
  • Exchange or trade of one digital asset for another digital asset
  • Receipt of a digital asset as payment for goods or services
  • Receipt of a new digital asset as a result of a hard fork
  • Receipt of a new digital asset as a result of mining or staking activities
  • Receipt of a digital asset as a result of an airdrop
  • Any other disposition of a financial interest in a digital asset.

What kind of cryptocurrency transaction did you engage in?

 

IRS Form 1099-K is a report of payments you got for goods or services during the year from:

 

  • Credit, debit or stored value cards such as gift cards (payment cards)
  • Payment apps or online marketplaces, also called third party settlement organizations or TPSOs

These organizations are required to fill out IRS Form 1099-K and send copies to the IRS and to you.

 

There are third parties who settle payments made in virtual currency on behalf of merchants that accept virtual currency from their customers.  These third parties are required to report payments to those merchants on IRS Form 1099-K, Payment Card and Third Party Network Transactions.  Is this what you are referring to?

 

 

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