I invested in crypto currency this past year. I purchased various cryptocurrencies with other cryptocurrencies and never transferred into USD. Is that taxed?

[Opus 17]

Yes, unfortunately each transaction is taxed as a gain or loss based on the US$ conversion rate on the day of the transaction.

For example.

2/1/17 buy BTC for $1000.

3/1/17 trade for Etherium when the BTC is worth $3000 = $2000 profit to report as income.

4/1/17 trade etherium for lite coin when the etherium is worth $4000= $1000 profit to report as income.

5/1/17 trade lite coin for bitcoin when the lite coin is worth $3000 = $1000 deductible loss.

12/31/17 still holding the bitcoin (no tax impact, but whenever you sell or trade it, your basis is $3000).

This is reported in Turbotax Premier or higher under Income from sale of stocks and other investments.

Stock brokers are required to issue form 1099-B summarizing these trades.  Cryptocurrency exchanges are not required to report on a 1099-B but some of them are starting to offer this information.  If not, you need your own good records.

[sifeij]

So, the total income is after all transactions adds up for taxable amount, correct?