I am helping my son do his taxes on TurboTax. Last year, he purchased $20 of Bitcoin with his robinhood/cash app account on his smartphone. Does he have to respond "YES" to the virtual currency question? He has not sold the Bitcoin and it is still in his account.
Thanks.
02423
2 Replies
AnnetteB6
Expert Alumni
Feb 27, 2021 1:54:08 PM
No, if he has not sold, traded, or spent any of the Bitcoin in a transaction, then there is nothing required to be reported on his tax return.
Simply purchasing and holding a cryptocurrency is not a taxable or reportable transaction.