Solved: Do you have to claim income generated from selling cryptocurrencies in another country that were bought on a USA platform? If so, how do you report the profits?
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Do you have to claim income generated from selling cryptocurrencies in another country that were bought on a USA platform? If so, how do you report the profits?

If you bought $10,000 of a cryptocurrency on an American platform (Coinbase, Kraken, Bittrex, etc), then sold the coins on a foreign (Non-USA) platform for $13,000, where do you file taxes to report the profit?

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Level 15

Do you have to claim income generated from selling cryptocurrencies in another country that were bought on a USA platform? If so, how do you report the profits?

If you are a US taxpayer, you report and pay US taxes on all your world-wide income. If you also pay foreign taxes on your foreign income, you can usually take a deduction or credit for that.

For sales of virtual currency, you have either a capital gain or a capital loss, depending on whether you sold for more or less than you paid.  The selling price is determined using the US$ conversion rate on the day of the sale.

Report your sales in the section for sales of stocks and other assets (schedule D).  You will need to know the purchase date, purchase price, sales date, and sales price in US$.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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Level 15

Do you have to claim income generated from selling cryptocurrencies in another country that were bought on a USA platform? If so, how do you report the profits?

If you are a US taxpayer, you report and pay US taxes on all your world-wide income. If you also pay foreign taxes on your foreign income, you can usually take a deduction or credit for that.

For sales of virtual currency, you have either a capital gain or a capital loss, depending on whether you sold for more or less than you paid.  The selling price is determined using the US$ conversion rate on the day of the sale.

Report your sales in the section for sales of stocks and other assets (schedule D).  You will need to know the purchase date, purchase price, sales date, and sales price in US$.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

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