I bought crypto last year but did not sell any of them. They are in my broker's account. Do I need to report them?
TurboTax used the word "acquire" which confused me. I even asked a live Tax expert, who told me "buy" mean "acquire". But according to this post, I don't think I should report it if I did not sell, right?
No, not if you invested in crypto but never sold it. If you however take crypto from one exchange such as Coinbase and place it in another exchange such as Gemini, then it could result in a taxable exchange even if you didn't sell it.
acquire is a more broad term than buy.
That makes the question cover more activity.
Do you have a dictionary?
@DaveF1006 Thanks. I only bought some and they stayed in Coinbase. Do not understand what does TurboTax mean by "acquire" here. I think it is confusing
To acquire means to take possession of. Turbo Tax is just alerting you to the fact that you have Crypto but doesn't necessarily mean that it is a taxable event. I think the term "sold" may be a better term but that it is only my opinion.
Yes. Thank you. The thing is if I answered "Yes". I will be asked to under the transactions, which I did not make in 2021. That is why I confused.
Turbo Tax (aka Intuit) doesn't always provide clear explanations. Turbo Tax is often the source of frustration for individuals who prepare their own tax returns. In this case, Turbo Tax uses the word "acquire" in the tax interview when the requirement is "selling, exchanging or disposing of virtual currency". Why do they do this? Proof is in the proofreader. You have to wonder who is proofreading the program updates at Turbo Tax | Intuit each year.