I purchased bitcoin a few weeks ago. The money I "invested" had now doubled. How and where do I enter that in my turbotax form?

[dkt10]

I purchased bitcoin a few weeks ago. The money I "invested" had now doubled. How and where do I enter that in my turbotax form? Do I claim them if I have not yet converted them to USD?

[Howard1948 · Accepted solution]

Bitcoin is an investment.  You do not include investments in your Federal income tax return until you sell them or, in your case, convert them to dollars.

[dkt10]

That's what I'm asking. When I converted them back to dollars...

[Howard1948]

<a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tips/tax-payments/tax-tips-for-bitcoin-and-virtual-currency/L1ZOgU00...>

[dkt10]

I've already read this article. I was hoping for a more direct explanation on filling out turbo tax sections and such. But thank you.

[VolvoGirl]

You enter the sale like a stock sale.  
Federal Taxes Tab
Wages & Income
Choose Jump to Full List -or I'll choose what I work on
Then scroll down to Investment Income,
Then Stocks, Mutual Funds, Bonds, Other - click Start or Update

[elliottc711]

I use BitcoinTaxes website (bitcoin.tax), which imports from many popular cryptocurrency exchanges and wallets. It then spits out a TXF file which can be imported directly into TurboTax. There are a few articles I have read discussing whether the conversion between cryptocurrencies is a like-kind exchange or not. The IRS has not finalized their stance, so I'm erring on the side of caution and entering the information as a stock sale with the type of investment as "Everything else" down at the bottom of the list.