Crypto taxation

[Dibbadabba]

So back in 2021 I bought ethereum crypto via coinbase and I transferred that eth and used to buy random crypto projects via crypto wallets.. I have not traded bought or sold any crypto since.. I'm overall way down (at a loss) since my initial investment across several projects.. My questions are as follows: 

1. If I'm at a loss and report a loss, does the irs allow that loss to reduce my tax obligations on my w2 income or schedule c small business income? 

2. I have never reported anything on my return as a buy or sell because the way I read it, I only report if I actually sell that position(s). Was that correct? 

3. I never received any tax forms from coinbase, does that sound OK considering I never brought ethereum or never converted to usd to move money back to my bank account? 

Let me know

[Cindy4]

Hi @Dibbadabba !

Capital gains and losses are reported if you sell, trade, or use crypto to make purchases.  All of your capital gains and losses will be netted together, and any unused capital loss can be used to offset your ordinary income up to $3,000, and then carryover to the next year.  Gain will be taxed at the current years capital gain rates.

Ordinary income is reported if you mine, stake, or receive airdrops.

Tax forms, such as 1099-B, may or may not be issued by your crypto exchange or wallet.  It is your responsibility to track the cost basis and any transactions that occur on your crypto.  Most wallets and exchanges offer csv file downloads to accommodate this.

Here is a great resource for all things crypto:

https://ttlc.intuit.com/community/articles/community-news-announcements/crypto-investors-your-lives-...

Hope this helps!

Cindy