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mvc5171998
New Member

Has anyone bought cryptocurrency through Coinbase, but sent the currency to a private wallet in order to store it securely? If so, how do you report that transaction?

 
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GiseleD
Expert Alumni

Has anyone bought cryptocurrency through Coinbase, but sent the currency to a private wallet in order to store it securely? If so, how do you report that transaction?

If the cryptocurrency did not change character in nature during the transfer (e.g., crypto to crypto trade, crypto to fiat trade, crypto used to purchase products and services), then it is not a transaction that needs to be reported on your tax return. Note: some services will allow you to trade inside wallets (e.g., Shapeshift, Exodus). If you participated in any transactions like this, they DO need to be reported. 

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GiseleD
Expert Alumni

Has anyone bought cryptocurrency through Coinbase, but sent the currency to a private wallet in order to store it securely? If so, how do you report that transaction?

If the cryptocurrency did not change character in nature during the transfer (e.g., crypto to crypto trade, crypto to fiat trade, crypto used to purchase products and services), then it is not a transaction that needs to be reported on your tax return. Note: some services will allow you to trade inside wallets (e.g., Shapeshift, Exodus). If you participated in any transactions like this, they DO need to be reported. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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