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mikegregory44
Level 2
Jan 21, 2022 2:40 PM UTC
Solved

Using crypto as currency not investment

An online merchant I frequent will be moving away from credit cards and accepting crypto only.  So my question is if I buy crypto on an exchange and immediately (no holding at all) transfer it to the merchant’s wallet do I need to report it?

Vanessa AAnswer
Alumni - Intuit
Jan 21, 2022 4:06 PM UTC

No, the holding period does not matter for reporting purposes.  You will still be required to report the transactions. 

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3 replies

Cynthiad66
Alumni - Intuit
Jan 21, 2022 3:43 PM UTC

Yes.  All transactions are reportable.  If you purchase and hold it then there is no taxable transactions, however when you convert it, the transaction is reportable.

 

Examples of disposals include the following: 

  • Trading or selling crypto for fiat currency (like USD) 

  • Trading one crypto for another cryptocurrency

  • Spending crypto to buy a good or service

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    mikegregory44Author
    Level 2
    Jan 21, 2022 3:56 PM UTC

    So the holding period doesn’t matter?

    Vanessa AAnswer
    Alumni - Intuit
    Jan 21, 2022 4:06 PM UTC

    No, the holding period does not matter for reporting purposes.  You will still be required to report the transactions. 

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"
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