topic I bought crypto currency back in 2017 and sold it in 2020. I lost around 60 dollars. Do I need to include this in my 2020 taxes? in Deductions & credits

I bought crypto currency back in 2017 and sold it in 2020. I lost around 60 dollars. Do I need to include this in my 2020 taxes?

slm1957slm — Fri, 01 Jan 2021 15:34:01 GMT

Re: I bought crypto currency back in 2017 and sold it in 2020. I lost around 60 dollars. Do I need to include this in my 2020 taxes?

Miss MCJ2 — Fri, 01 Jan 2021 15:36:20 GMT

No you do not need to report it.

Re: I bought crypto currency back in 2017 and sold it in 2020. I lost around 60 dollars. Do I need to include this in my 2020 taxes?

DJS — Fri, 01 Jan 2021 15:36:49 GMT

Bitcoins held as capital assets are taxed as property

If Bitcoin is held as a capital asset, you must treat them as property for tax purposes. General tax principles applicable to property transactions apply. 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.

Please see the following for more details: https://turbotax.intuit.com/tax-tips/tax-payments/tax-tips-for-bitcoin-and-virtual-currency/L1ZOgU00q#:~:text=Bitcoins%20held%20as%20capital%20assets%20are%20taxed%20as%20property&text=Like%20stocks%20or%20bonds%2C%20any,or%20loss%20on%20an%20exchange.

Re: I bought crypto currency back in 2017 and sold it in 2020. I lost around 60 dollars. Do I need to include this in my 2020 taxes?

Opus 17 — Fri, 01 Jan 2021 15:48:24 GMT

For most people, the IRS treats cryptocurrency the same way that it treats personal property like furniture, or collectible comic books. If you sell it at a profit, that is taxable income, but if you sell at a loss, the loss is not deductible. You do not need to report the transaction at all unless you receive some type of 1099 form from the broker. In that case, you will report the loss, check the box that this was personal property, and your tax return would show the report but would show it as non-deductible. That way the IRS does not send you a letter wondering why you did not report the sale. If you do not receive any tax paperwork from the broker, you do not need to report the sale.

A few people who invest heavily in cryptocurrency may qualify as investors, in which case they can deduct their losses against their other gains. It does not sound like you are in this position, and if you claimed the cryptocurrency as an investment loss, it might not be accepted by the IRS.