Transferred BTC from account A to account B, so have no cost basis, how do I report?

[goingsk]

Transferred BTC into CashApp and sold it in 2020. Have no cost basis but do have proceeds on 1099 since it was a transfer.  How do I report this?  The account I transferred FROM was a cash out from a gambling site, paid in BTC, so there's not really a cost basis to it (gambling income reported separately).

[DianeW777]

If you transferred money from cash out from your gambling site, then this would be the cost of the BTC. Since it is taxable funds it would also consitute a cost basis for your BTC. Only you can determine the actual cost basis of your BTC purchase.

Once you have your figures (suggest you choose 'I'll enter myself'):

1. Open or continue your return.
2. Select Federal from the left menu, and Wages & Income from the menu near the top.
3. Scroll down and select Show more next to Investment Income.
4. Select Start or Revisit next to Cryptocurrency.
5. Follow the instructions and we'll calculate the gain or loss from the sale.