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theeseavershow
New Member

You asked if I bought/traded/sold any virtual currency. I said Yes. But no other information was collected about it. That doesn’t seem right?

 
6 Replies
SusanY1
Employee Tax Expert

You asked if I bought/traded/sold any virtual currency. I said Yes. But no other information was collected about it. That doesn’t seem right?

It's right.  Strange question, though, isn't it? 

 

This year, the IRS added a checkbox to the top of Schedule 1 that asks: "At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?"

 

All they want is a yes or no answer, for now.  

 

You can see that question if you'd like, here: IRS Schedule 1, 2019.

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RobertG
Expert Alumni

You asked if I bought/traded/sold any virtual currency. I said Yes. But no other information was collected about it. That doesn’t seem right?

You need to report your cryptocurrency if you sold, exchanged, spent or converted it though.

 

  1. Select Federal from the left menu, and Wages & Income from the menu near the top.
  2. Scroll down and select Show more next to Investment Income.
  3. Select Start or Revisit next to Cryptocurrency.
  4. Follow the instructions and we'll calculate the gain or loss from the sale.

For further information please see the TurboTax website: How do I report Bitcoin or other cryptocurrency as a capital gain?

 

 

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paoruedas
Level 1

You asked if I bought/traded/sold any virtual currency. I said Yes. But no other information was collected about it. That doesn’t seem right?

Hi! I said yes to this because I just bought, but didn't sell. However, when I actually looked at the check box in the 1040, "did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency" it implies that I just said yes to a taxable event, even I'm not. Will I get in trouble?

 

Thank you!

DaveF1006
Employee Tax Expert

You asked if I bought/traded/sold any virtual currency. I said Yes. But no other information was collected about it. That doesn’t seem right?

No you shouldn't as long as you didn't report any sales transactions. The caption that you said yes to prompts Turbo Tax to list a section for you to report. If you left that section blank, no worries.

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paoruedas
Level 1

You asked if I bought/traded/sold any virtual currency. I said Yes. But no other information was collected about it. That doesn’t seem right?

So it’s okay if I filed with “Yes” on the check box in1040 even I have no transactions to show? My case is I didnt report any sales, but I checked Yes when I filed. I thought just buying is considered a transaction so I said yes even I dont have any sales or interests.

AmyC
Employee Tax Expert

You asked if I bought/traded/sold any virtual currency. I said Yes. But no other information was collected about it. That doesn’t seem right?

Yes, the question does include the words receive and acquire on the actual tax form. It is a checkbox on the tax form and the IRS receives crypto information so better safe than sorry. If you had a sale, you would have used more forms.

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