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Level 2
posted Mar 31, 2025 5:09:11 PM

Received Crypto Reward , sold them last year. Question on how to enter that in Turbo Tax

Received some free crypto after doing some Coinbase learning in 2021. Reported them as Misc Income the same year. Sold the crypto last year. I am using Cost basis as the income that was reported for that year. 

Little confused on the section, how did you receive the investment. Should it be purchased or received as gift? Second option changes the Cost basis to previous owners cost-basis. Which is not correct (I think). Any help will be appreciated

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2 Best answers
Expert Alumni
Apr 1, 2025 7:49:21 AM

Agree that the Cost or other basis would equal the income that was reported for the investment in 2021.

 

I would report I purchased it when asked How did you receive this investment?

Expert Alumni
Apr 1, 2025 2:38:24 PM

Yes, you earned the rewards and exchanged your income for the crypto - in essence, you purchased the crypto.

3 Replies
Expert Alumni
Apr 1, 2025 7:49:21 AM

Agree that the Cost or other basis would equal the income that was reported for the investment in 2021.

 

I would report I purchased it when asked How did you receive this investment?

Level 2
Apr 1, 2025 10:04:23 AM

The crypto's were received thru Coinbase Learning Reward.

Thank you

Jay

Expert Alumni
Apr 1, 2025 2:38:24 PM

Yes, you earned the rewards and exchanged your income for the crypto - in essence, you purchased the crypto.