topic Should I report if I bought Bitcoin and Ethereum from Coinbase and transferred and kept them in my personal wallet? in Get your taxes done using TurboTax

Should I report if I bought Bitcoin and Ethereum from Coinbase and transferred and kept them in my personal wallet?

choi450 — Mon, 03 Jun 2019 20:14:28 GMT

The direct answer to your direct question is "No", that's...

TomYoung — Mon, 03 Jun 2019 20:14:29 GMT

The direct answer to your direct question is "No", that's not reportable. What is reportable is the sale of the coins. Buying something with bitcoin is a "sale" because for tax purposes bitcoin is not "currency."

Tom Young

If you hold Bitcoin as a capital asset, you must treat it...

MichaelDC — Mon, 03 Jun 2019 20:14:32 GMT

If you hold Bitcoin as a capital asset, you must treat it as property for tax purposes. General tax principles applicable to property transactions apply. In other words, just like stocks or bonds, any gain or loss from the sale or exchange of the asset is taxed as a capital gain or loss. Otherwise, the investor realizes ordinary gain or loss on an exchange.