I'm trying to input my cryptocurrency transactions, but I'm not sure how to report transactions where I converted one cryptocurrency into another cryptocurrency.

[cjkennedy201]

Where and how would I input crypto -> crypto transactions? On the desktop app, I only see fields for cryptocurrencies that have been bought and sold, and I don't see any place to input a conversion to another cryptocurrency.

[MarilynG1]

Converting or exchanging would be considered a sale.

Like stocks or bonds, any gain or loss from the sale or exchange of the asset is taxed as a capital gain or loss.

Click this link for more info on Reporting Crypto as Capital Gains/Loss.

This link gives detailed info on Tax Tips for Virtual Currency.

[cjkennedy201]

How would I input that? Because isn't it effectively the same amount of money, considering I'm translating X dollar's worth of one cryptocurrency into the dollar value of a different cryptocurrency, minus any fees?

I'm just unclear as to which numbers I should be entering here because the Turbotax form only asks for dollar amounts

[JohnB5677]

No, it is not the same.  You are correct that you have to convert all of the currency into US dollars.

• If you start out by buying Cryptocurrency (A) for $100, nothing will be reported
• Now you sell currency (A) for $120.  Now you have a transaction.
• You have made a profit of $20.
• If you choose to purchase currency (B) the cycle will start over again. 
• Profit or Loss is determined by the Proceeds (Selling Price) less the Cost.

To post this go to:

Income & Expenses

1. Scroll to Stocks, Mutual Funds, Bonds, Other
2. Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2020?
   • If you see Here's the info we have for these investment sales, select Add More Sales.
3. Answer Yes to Did you get a 1099-B or brokerage statement for these sales?
4. At Let's get your tax info, choose how you want to enter your 1099-B (import or type it in yourself)